Notes to SEFA
The accompanying schedule of expenditures of federal and state awards (SFSA) includes the federal and state grant activity of the Town of Red Springs under the programs of the federal government and the State of North Carolina for the year ended June 30, 2025. The information in this SEFSA is presented in accordance with the requirements of title 2 US Code of Federal Regulations Part 200, Uniform Administrative Requirements Cost Principles and Audit Requirements for Federal Awards and the State Single Audit Implementation Act. Because the Schedule presents only a selected portion of the operations of the Town of Red Springs, it is not intended to and does not present the financial position, changes in net position or cash flows of the Town of Red Springs.
Expenditures reported in the SEFSA are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Guidance wherein certain types of expenditures are not allowable or are limiated as to reimbursements.
The Town of Red Springs has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance.
The FEMA Disaster Grant (AL 97.036) expenditures reported for Hurricane Florence on the SEFSA represent reimbursements received during the current fiscal year that were used to repay the NCORR loan originally advanced in FY 2021 to cover eligible disaster‑related expenditures. The loan was intended to be repaid as FEMA reimbursements were received.