Audit 19358

Title: Expense capitalization Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes federal grant activity of Central Oregon Irrigation District under programs of the federal government for the year ended December 31, 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). Because the Schedule presents only a selected portion of the operations of Central Oregon Irrigation District, it is not intended to and does not present the financial position, changes in net assets or cash flows of Central Oregon Irrigation District. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Expenditures are recorded when a liability is incurred. 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 auditee did not use the de minimis cost rate. During the year ended December 31, 2022, the District capitalized $7,841,121 of expenditures of federal funds as capital assets.