Notes to SEFA
Title: Economic Development Administration and CARES EDA
Accounting Policies: Expenditures reported in the SEFSA are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in OMB Circular A-87, Cost Principles for State, Local, and Indian Tribal Governments or cost principles contained in Title 2 US Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursements
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The Economic Development Administration expenditures for Economic Adjustment Assistance (RLF) are calculated using the following method: Balance of theprincipal outstanding on loans at the end of the recipient's fiscal year, plus cash and investment balance at the end of the recipient's fiscal year, plus administrativeexpenses paid out of income during the recipient's fiscal year, plus unpaid principal of all loans written off during the recipient's fiscal year, then multiply the sumby the federal share.
Title: Basis of Presentation
Accounting Policies: Expenditures reported in the SEFSA are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in OMB Circular A-87, Cost Principles for State, Local, and Indian Tribal Governments or cost principles contained in Title 2 US Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursements
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The accompanying schedule of expenditures of federal and State awards (SEFSA) includes the federal and State grant activity of Kerr Tar Council of Governmentunder the programs of the federal government and the State of North Carolina for the year ended June 30, 2022. The information in this SEFSA is presented inaccordance with the requirements of Office of Management and Budget (OMB) Circular A-133, Audits of States, Local Governments, and Non-ProfitOrganizations and the State Single Audit Implementation Act. Because the SEFSA presents only a select portion of the operations of Kerr Tar Council ofGovernments, it is not intended to and does not present the financial position, changes in net assets or cash flows of the Kerr Tar Council of Governments.