Audit 18928

Title: 4. COVID-19 - DISASTER GRANTS - PUBLIC ASSISTANCE (PRESIDENTIALLY DECLARED Accounting Policies: 1. BASIS OF PRESENTATION The accompanying schedule of expenditures of federal and state awards includes the federal and state award activity of the Public Service Board - El Paso Water Utilities (EPWater), a component unit of the City of El Paso, under programs of the federal and state governments for the year ended February 28,2022. 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) and the State of Texas Uniform Grant Management Standards. Because the schedule presents only a selected portion of the operations of the EPWater, it is not intended to and does not present the financial position, changes in net position, or cashflows of EPWater.2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Expenditures reported on the schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance and the State of Texas Uniform Grant Management Standards wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: EPWater has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The amount reported in the schedule of federal and state expenditures under the COVID-19 - Disaster Grants -Public Assistance (Presidentially Declared Disasters) Program, ALN 97.036, of $1,117,311 were incurred in the prior fiscal year ending February 28, 2021. The grant award was approved in fiscal year ending February 28, 2022, and therefore is reported in this years schedule of federal and state expenditures in accordance with the 2021 Compliance Supplement.