Notes to SEFA
The accompanying schedule of expenditures of federal awards (SEFA) includes the federal grant activity of Jefferson Davis Electric Cooperative, Inc. (the Cooperative) and is presented on the accrual basis of accounting. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the SEFA presents only a selected portion of the operations of the Cooperative, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Cooperative.
Amounts are reported on the schedule of expenditures of Federal awards when the funds are obligated to and expended by the awarded entity. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or limited as to reimbursement.
The Cooperative has elected not to use either the 15% or the 10% de minimis cost rate allowed under Uniform Guidance.
The Cooperative includes Expenditures of Federal Awards from Category Z costs (Management Costs). Eligible costs up to 5% of total expenditures are able to be claimed and cover costs of management of projects such as consulting and auditing services. The Cooperative included obligated funds for Category Z costs in the SEFA totaling $0. For the year ended December 31, 2025, the Cooperative paid $0 to their Federal Emergency Management Agency (FEMA) consultant in relation to Category Z costs.
The Cooperative received a total of $144,734,835 from FEMA during the year ended December 31, 2025.
As of December 31,2025, the Cooperative had cash received from FEMA deposited in a checking account located at a local financial institution totaling $25,449,692. The Cooperative is advanced funds from FEMA that are used to build transmission line as part of the Cooperative’s FEMA claim. The account is interest bearing and is insured up to $250,000 by the Federal Deposit Insurance Corporation.