Notes to SEFA
The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal award activity of Winthrop Utilities District under programs of the federal government for the year ended December 31, 2025. The information in the 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 Winthrop Utilities District, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Winthrop Utilities District.
Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following cost principles contained in the Uniform Guidance wherein certain types of expenditures are not allowable or limited as to reimbursement.
Winthrop Utilities District has elected not to use the 15% de minimis indirect cost rate allowed under Uniform Guidance.
The district secured temporary loans from a bank for capital projects. These loans are backed by the United States Environmental Protection Agency (“EPA”) Assistance Listing Number 66.458, Clean Water State Revolving Fund. Once the capital project is finished, these loans will be converted to permanent financing. In accordance with 2 CFR Part 200, Subpart F, the amount reported on the Schedule of Expenditures of Federal Awards (SEFA) represents the value of new loan draws received during the current fiscal year plus the beginning balance of loans from previous years that carry continuing federal compliance requirements. As of December 31, 2025, the total loan commitment is $1,250,000, and the outstanding balance of this loan was as follows: