Notes to SEFA
The accompanying schedule of expenditures of federal awards (the Schedule) is a supplementary schedule to the consolidated financial statements of Midwest Energy Cooperative (the Cooperative) and is presented for purposes of additional analysis. Because the Schedule presents only a selected portion of the activities of the Cooperative, it is not intended to, and does not present either the financial position, changes in net position, or operating revenues and expenses of the Cooperative.
The information in the Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance).
Pursuant to the Uniform Guidance, federal financial assistance is defined as assistance provided by a federal agency, either directly or indirectly, in the form of grants, contracts, cooperative agreements, loans, loan guarantees, property, interest subsidies, insurance, or direct appropriations. Nonmonetary assistance is included in the Schedule, if applicable. Federal financial assistance does not include direct federal cash assistance to individuals or solicited contracts between the state and federal government through which the federal government procures tangible goods or services.
The reporting entity is fully described in Note 1 of the consolidated financial statements (incorporated by reference only). Additionally, the Schedule includes all federal programs administered by the Cooperative for the year ended December 31, 2025.
As in the consolidated financial statements, the accompanying Schedule is prepared based on the accrual basis of accounting. Expenditures are recognized following the cost principles contained in Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Pass-through entity identifying numbers are presented where applicable. The Cooperative did not elect to use the de minimis indirect cost rate allowed under the Uniform Guidance.