Notes to SEFA
Title: Basis of Presentation
Accounting Policies: Expenditures reported in the SEFSA are reported on the modified accrual basis of accounting. Suchexpenditures are recognized following the cost principles contained in the Uniform Guidance, whereincertain types of expenditures are not allowable or are limited as to reimbursements. Negative amountsshown on the SEFSA, if any, represent adjustments or credits made in the normal course of business toamounts 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 and State Awards (SEFSA) includes the federal and State grant activity of the Town of Morehead City under 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 in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Costs Principles, and Audit Requirements for Federal Awards (UniformGuidance). Because the SEFSA presents only a select portion of the operations of the Town of Morehead City, it is not intended to and does not present the financial position, changes in net position or cash flows of the Town of Morehead City. There were no federal or State awards passed through to subrecipients for the year ended June 30, 2022.
Title: Loans Outstanding
Accounting Policies: Expenditures reported in the SEFSA are reported on the modified accrual basis of accounting. Suchexpenditures are recognized following the cost principles contained in the Uniform Guidance, whereincertain types of expenditures are not allowable or are limited as to reimbursements. Negative amountsshown on the SEFSA, if any, represent adjustments or credits made in the normal course of business toamounts reported as expenditures in prior years.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The Town of Morehead City has outstanding loan balances from federal and State funding sources that are not required to be presented within the SEFSA because there are no continuing requirements beyond the repayment of the loan balances in accordance with loan agreement provisions. Loans outstanding at June 30, 2022 consist of:Safe Drinking Water Revolving Loan Fund $ 85,000Clean Water Revolving Loan Fund 150,000Clean Water State Revolving Loan Fund 5,250,000Drinking Water State Revolving Loan Fund 258,000Water Treatment Facilities 4,449,000