Notes to SEFA
Title: Basis of Presentation
Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. 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. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of West Kentucky Rural Telephone Cooperative Corporation, Inc. under programs of the federal government for the year ended December 31, 2022. The information in this Schedule is 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 Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operationsof West Kentucky Rural Telephone Cooperative Corporation, Inc., it is not intended to and does not present the financial position, results of operations or cash flows of West Kentucky Rural Telephone Cooperative Corporation, Inc.
Title: FEMA Funding
Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. 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. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
Non-federal entities must record expenditures for Federal Emergency Management Agency (FEMA) projects on the Schedule when 1) FEMA has approved the non-federal entitys project worksheet and, 2) the non-federal entity has incurred the eligible expenditures. The 2022 expenditures for Federal Assistance Listing Number 97.036 include $80,244 of expenditures that were incurred by West Kentucky Rural Telephone Cooperative Corporation, Inc. prior to 2022, while the project worksheet was approved in 2022.