Notes to SEFA
The accompanying schedule of expenditures of federal awards (The Schedule) includes the federal award activity of the District under programs of the federal government for the year ended April 30, 2026. 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 District, it is not intended and does not present the financial position, changes in net assets, or cash flows of the District
Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following costs principles contained in the Uniform Guidance wherein certain types of expenditures are not allowable or are limited as to reimbursement.
The Association has elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.
The Association has outstanding Rural Utilities Service loans payable which were obtained in prior years, and management has determined that the outstanding loans do not impose continuing federal compliance requirements other than repayment. Accordingly, the loan balances are not reported as federal awards under 2 CFR 200.502 and is not included in the federal program subject to this audit. The outstanding balance of such loans at April 30, 2026 was $ 6,313,537.