Notes to SEFA
Title: Loan/loan guarantee outstanding balances
Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards ("Schedule") includes federal grant activity of the Richmond Water Gas and Sewerage Works under programs of the federal government for the year ended June 30, 2022, and is presented on the accrual basis of accounting. The information in this Schedule is presented in accordance with 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 selected portions of the operations of RWGS, it is not intended to and does not present the financial position, changes in position, or cash flows of RWGS.
De Minimis Rate Used: N
Rate Explanation: Uniform Guidance recommends a methodology be selected for indirect cost allocated to federal award programs. RGWS receives federal funding as part of a loan program in which no indirect costs are included as part of the funding request, therefore there are no indirect costs.
FEDERALLY ASSISTED WASTEWATER REVOLVING LOAN FUND PROGRAM, FUND A (64.458) - Balances outstanding at the end of the audit period were 10540676. RWGS participates in a lending program with KIA to fund construction projects related to the water and sewerage system in their local area. RWGS submits reimbursement request to make drawls on the construction loan. KIA determines the funding sources for the loan (federal or state funds). Federal funds that were received during the current year were related to loan A19-050. This was the first year in which federal funds were received through this loan. See Note G in the Notes to Financial Statements for additional details on the loan.