Notes to SEFA
Title: OTHER
Accounting Policies: The schedule of expenditures of federal awards is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations 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 operations of Kaneco Association, it is not intended to and does not present the financial position, changes in net assets, and cash flows of Kaneco Association. 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.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
Kaneco Associations did not receive any federal noncash assistance or provide any funding to subrecipients. They also did not have any federal insurance.
Title: SECTION 811 CAPITAL ADVANCE
Accounting Policies: The schedule of expenditures of federal awards is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations 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 operations of Kaneco Association, it is not intended to and does not present the financial position, changes in net assets, and cash flows of Kaneco Association. 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.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
Kaneco Associations capital advance was funded in prior years and is subject to continuing compliance requirements. The amount has not changed in the year ended June 30, 2022.