Notes to SEFA
Title: Note 3 - Federal Loans
Accounting Policies: The schedule is prepared on the same basis of accounting as PUD No. 1 of Kitsap County's financial statements. PUD No. 1 of Kitsap County uses the accrual basis of accounting.
De Minimis Rate Used: N
Rate Explanation: PUD No. 1 of Kitsap County has not elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The amounts expended do not include any indirect cost recoveries.
(a) PUD No. 1 of Kitsap County was approved by the EPA and the Washington State DOH to receive a loan totaling $2,455,000 to make improvements to the Bill Point and South Bainbridge Island regional water systems. The amount listed for this loan includes the beginning of the period loan balance plus proceeds used during the year. The balance owing at the end of the period is $319,033.
(b) PUD No. 1 of Kitsap County was approved by the EPA and the Washington State DOH to receive a loan totaling $2,410,350 to consolidate the Bill Point, Island Utility and South Bainbridge Island water systems. The amount listed for this loan includes the beginning of the period loan balance plus proceeds used during the year. The balance owing at the end of the period is $0.
Both the current and prior year loans are reported on the District's Schedule of Changes in Long-Term Liabilities.
Title: Note 4 - Program Costs
Accounting Policies: The schedule is prepared on the same basis of accounting as PUD No. 1 of Kitsap County's financial statements. PUD No. 1 of Kitsap County uses the accrual basis of accounting.
De Minimis Rate Used: N
Rate Explanation: PUD No. 1 of Kitsap County has not elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The amounts expended do not include any indirect cost recoveries.
The amounts shown as current year expenditures represent only the federal award portion of the program costs. Entire program costs, including the PUD No. 1 of Kitsap County's portion, are more than shown. Such expenditures are recognized following the cost principles contained in Title 2 U.S. 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 reimbursement.