Notes to SEFA
Title: Provisions Granted to Borrowers of Rural Utilities Service
Accounting Policies: Central Alabama Electric Cooperative, Inc. (the 'Cooperative") is a private, not-for-profit corporation. Founded in 1938, the Cooperative distributes electric power to residential and commercial users in central Alabama. The accompanying Schedule of Expenditures of Federal Awards (the "Schedule") has been prepared on the cash basis of accounting and 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). The Schedule summarizes the expenditures of the Cooperative for the Project Worksheets under the programs of the federal government for the year ended December31, 2022 awards, although the expense was incurred in prior years. The Schedule presents the completed Project Worksheets as of the period from April 19, 2020 to December 31, 2022, and is not intended to and does not present the financial position, changes in net assets or cash flows of the Cooperative in accordance with accounting principles generally accepted in the United States of America. Expenditures for direct costs are recognized as incurred using the cash basis of accounting and the cost principles contained in FEMA Public Assistance Publications and the Uniform Guidance. Under those cost principles, certain types of expenditures are not allowable or are limited as to reimbursement. The Cooperative receives funding for reimbursement from the Federal Emergency Management Agency (FEMA) passed through the State of Alabama Emergency Management Agency (A-EMA).For purposes of the Schedule, federal awards include all grants, contracts and similar agreements entered into directly between the Cooperative and departments of FEMA and A-EMA.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The Cooperative obtained financing from Rural Utilities Service (RUS) in prior periods and is considered a RUS borrower as of December 31, 2022. RUS borrowers are exempt fromSubpart F of Title 2 U.S. Code of Federal Regulations Part 200, unless Subpart F isimposed upon them by the grantor agency. For the year ended December 31, 2022,management determined that the Cooperative's federal awards were under no suchimposition except for federal awards from FEMA.