Notes to SEFA
Title: Capital Advance
Accounting Policies: The schedule of expenditures of federal awards has been prepared on an accrual basis of accounting.Such expenditures are recognized following the cost principles contained in the Uniform Guidanceand also 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 Requirementsfor Federal Awards for all new federal awards received on or after December 26, 2014, and forfunding increments (additional funding on existing awards) with modified terms and conditions thatare awarded on or after that date, and OMB A-133 for federal awards made prior to December 26,2014. Because the schedule of expenditures of federal awards presents only a selected portion of theoperations of the Project, it is not intended to, and does not present, the financial position, changesin net assets, or cash flows of the Project.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The $2,436,501 capital advance reflected on the schedule of expenditures of federal awards was recorded as a contribution in the financial statements for the year ended March 31, 2006, which is the year it was received, for the construction of the Project.