Notes to SEFA
Title: LOAN
Accounting Policies: Note 1: Basis of PresentationThe accompanying schedule of expenditures of federal and State awards (SEFSA) includes the federal and State grant activity of the Town of North Wilkesboro under the programs of the federal government and the State of North Carolina for the year ended June 30, 2022. The information in this SEFSA is presented in accordance with the requirements of Title 2 US Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards and the State Single Audit Implementation Act. Because the Schedule presents only a selected portion of the operations of the Town of North Wilkesboro, it is not intended to and does not present the financial position, changes in net position, or cash flows of the Town of North Wilkesboro.Note 2: Summary of Significant Accounting PoliciesExpenditures reported in the SEFSA are reported on the modified accrual basis of accounting. Such 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.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
Note 4: LoanThe Town obtained a loan in the amount of $1,973,196 from the North Carolina Environmental Quality. During the year, $933,390 was expended.