Notes to SEFA
THE ACCOMPANYING SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS INCLUDES THE FEDERAL GRANT ACTIVITY OF HAYES CREEK WATER ASSOCIATION, INC. UNDER PROGRAMS OF THE FEDERAL GOVERNMENT FOR THE YEAR ENDED JUNE 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 ADMINISTRATION REQUIREMENTS, COST PRINCIPLES, AND AUDIT REQUIREMENTS FOR FEDERAL AWARDS (UNIFORM GUIDANCE). BECAUSE THE SCHEULE PRESENTS ONLY A SELECTION PORTION OF THE OPERATIONS OF HAYES CREEK WATER ASSOCIATION, INC., IT IS NOT INTENDED TO AND DOES NOT PRESENT THE FINANCIAL POSITION, CHANGES IN NET ASSETS, OR CASH FLOWS OF HAYES CREEK WATER ASSOCIATION, INC.
1. 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 ARE LIMITED AS TO REIMBURSEMENT. 2. PASS-THROUGH ENTITY IDENTIFYING NUMBERS ARE PRESENTED WHERE AVAILABLE.
HAYES CREEK WATER ASSOCIATION, INC. HAS ELECTED NOT TO USE THE 15% DE MINIMIS INDIRECT COST RATE ALLOWED UNDER THE UNIFORM GUIDANCE.
THE ASSOCIATION WAS APPROVED FOR FOUR USDA RURAL DEVELOOPMENT LOANS IN PRIOR YEARS. THESE FUNDS WERE USED FOR THE CONSTRUCTION OF WELLS AND IMPROVEMENTS TO THE WATER DISTRIBUTION SYSTEM OF THE ASSOCIATION. THE AMOUNTS LISTED IN THE SCHEDULE REPRESENT THE OUTSTANDING LOAN BALANCES FOR EACH LOAN AS OF JULY 1, 2025 FOR THE THREE LOANS DATED OCTOBER 10, 1989, FEBRUARY 14, 2000, AND AUGUST 18, 2000. THE AMOUNT LISTED FOR THE LOAN DATED DECEMBER 12, 2023 REPRESENTS THE LOAN BALANCE AS OF JULY 1, 2025 OF $355,862 AND CURRENT YEAR PROCEEDS OF $772,755 TOTALING $1,128,617.