Notes to SEFA
Title: Water and Waste Disposal Systems
Accounting Policies: The accompanying schedule of expenditures of federal awards is a summary of the activity of the Cooperatives federal award program presented on the accrual basis of accounting.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
$390,404 of the federal awards represents direct loan proceeds for water and waste disposal systems evidenced by promissory notes with the United States of America or commercial banks acting through the Rural Development program within the United States Department of Agriculture. $4,502,896 of the federal awards represents loan proceeds from interim financing from a commercial bank for expenditures in the construction period to be refinanced by a Rural Utilities Service loan.