Notes to SEFA
The accompanying Schedule of Expenditures of Federal Awards (the "Schedule") includes the federal award activity of Danville Municipal Authority under programs of the federal government for the year ended December 31, 2025. 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 Danville Municipal Authority, it is not intended to and does not present the financial position, changes in net position, or cash flows of Danville Municipal Authority.
The amount of federal expenditures for the United States Environmental Protection Agency programs listed on the schedule represents the expenditures incurred under certain loans during the year ended December 31, 2025. The United States Environmental Protection Agency requires that the current year expenditures incurred under the loans be reported on the schedule rather than the beginning balance of the loans. Of the $4,765,027 in federal awards expended under the Clean Water State Revolving Funds program, $3,030,081 relates to expenditures funded by a loan and the remaining, $1,734,946 relates to expenditures funded by a principal forgiveness loan. Therefore, the Authority has no ongoing compliance requirements other than those relating to the year in which the expenditures are incurred.