Notes to SEFA
Title: Subrecipients
Accounting Policies: Basis of Accounting
The accompanying schedule of expenditures of federal awards (the schedule) presents the
activity of all federal financial assistance programs of the Town of Sunset, Louisiana (the Town).
The Town’s reporting entity is defined in Note 1 to the financial statements for the year ended June
30, 2023. The information in this schedule is presented 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). Because the schedule presents
only a selected portion of the operations of the Town, it is not intended to and does not present the
financial position, changes in net position, or cash flows of the Town.
Summary of Significant Accounting Policies
Expenditures reported on the schedule are reported on the modified accrual basis of
accounting. Such expenditures are recognized following the cost principles contained in the Uniform
Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: The Town of Sunset, Louisiana has not elected to use the 10 percent de minimus indirect cost
rate as allowed under the Uniform Guidance.
The Town provided no federal awards to subrecipients.
Title: Loan Balance
Accounting Policies: Basis of Accounting
The accompanying schedule of expenditures of federal awards (the schedule) presents the
activity of all federal financial assistance programs of the Town of Sunset, Louisiana (the Town).
The Town’s reporting entity is defined in Note 1 to the financial statements for the year ended June
30, 2023. The information in this schedule is presented 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). Because the schedule presents
only a selected portion of the operations of the Town, it is not intended to and does not present the
financial position, changes in net position, or cash flows of the Town.
Summary of Significant Accounting Policies
Expenditures reported on the schedule are reported on the modified accrual basis of
accounting. Such expenditures are recognized following the cost principles contained in the Uniform
Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: The Town of Sunset, Louisiana has not elected to use the 10 percent de minimus indirect cost
rate as allowed under the Uniform Guidance.
Loan balance outstanding at June 30, 2023 under the Capitalization Grants for Drinking Water State Revolving Funds (66.468) was $2,996,427.