Notes to SEFA
The accompany Schedule of Expenditures of Federal Awards presents the activity of all federal financial assistance programs of the Town of Severance, Colorado (the Town) for the year ended December 31, 2025. The Town’s reporting entity is defined in Note 1 to the Town’s basic financial statements. All federal assistance received by the primary government directly from federal agencies, as well as federal financial assistance passed through other government agencies and the State of Colorado.
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 schedule presents only a selected portion of the operations of the Town it is not intended to and does not present the financial position of the operations of the Town and it is not intended to and does not present the financial position, changes in net position, or cash flows of the Town.
Expenditures reported on the schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein, certain types of expenditures are not allowable or are limited as to reimbursement.
The Town has elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.