Notes to SEFA
The accompanying schedule of expenditures of federal awards (SEFA) includes the federal awards activity of Valley Electric Association, Inc. and Subsidiaries (the Association) 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 SEFA presents only a selected portion of the operations of the Association, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Association.
Expenditures reported on the SEFA are reported on the accrual basis of accounting based on when the funds are obligated by the awarding entity. 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 Association has elected not to use the 15 percent de minimis cost rate allowed under Uniform Guidance.