Title: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards presents the activity of all federal award
programs of the North Texas Municipal Water District ( the " District") for the year ended September 30,
2023. The District' s reporting entity is defined in Note 1 of the District' s Annual Comprehensive Financial
Report. The accompanying notes are an integral part of this Schedule. All federal awards received directly
by the primary government from federal agencies, as well as federal awards passed through other
government agencies, are included in the scope of the Federal Single Audit requirements of Title 2 U. S.
Code of Federal Regulations ( CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards ( Uniform Guidance) and are included on the Schedule of
Expenditures of Federal Awards. There were no funds passed to subrecipients.
De Minimis Rate Used: N
Rate Explanation: The District is not charging indirect costs to the programs.
General
The accompanying Schedule of Expenditures of Federal Awards presents the activity of all federal award
programs of the North Texas Municipal Water District ( the " District") for the year ended September 30,
2023. The District' s reporting entity is defined in Note 1 of the District' s Annual Comprehensive Financial
Report. The accompanying notes are an integral part of this Schedule. All federal awards received directly
by the primary government from federal agencies, as well as federal awards passed through other
government agencies, are included in the scope of the Federal Single Audit requirements of Title 2 U. S.
Code of Federal Regulations ( CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards ( Uniform Guidance) and are included on the Schedule of
Expenditures of Federal Awards. There were no funds passed to subrecipients.
Basis of Accounting
The accompanying Schedule of Expenditures of Federal Awards is presented using the accrual basis of
accounting.
Title: INDIRECT COST RATE
Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards presents the activity of all federal award
programs of the North Texas Municipal Water District ( the " District") for the year ended September 30,
2023. The District' s reporting entity is defined in Note 1 of the District' s Annual Comprehensive Financial
Report. The accompanying notes are an integral part of this Schedule. All federal awards received directly
by the primary government from federal agencies, as well as federal awards passed through other
government agencies, are included in the scope of the Federal Single Audit requirements of Title 2 U. S.
Code of Federal Regulations ( CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards ( Uniform Guidance) and are included on the Schedule of
Expenditures of Federal Awards. There were no funds passed to subrecipients.
De Minimis Rate Used: N
Rate Explanation: The District is not charging indirect costs to the programs.
The District is not charging indirect costs to the programs.
Title: RELATIONSHIP TO FEDERAL FINANCIAL REPORTS
Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards presents the activity of all federal award
programs of the North Texas Municipal Water District ( the " District") for the year ended September 30,
2023. The District' s reporting entity is defined in Note 1 of the District' s Annual Comprehensive Financial
Report. The accompanying notes are an integral part of this Schedule. All federal awards received directly
by the primary government from federal agencies, as well as federal awards passed through other
government agencies, are included in the scope of the Federal Single Audit requirements of Title 2 U. S.
Code of Federal Regulations ( CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards ( Uniform Guidance) and are included on the Schedule of
Expenditures of Federal Awards. There were no funds passed to subrecipients.
De Minimis Rate Used: N
Rate Explanation: The District is not charging indirect costs to the programs.
Grant expenditures reports as of September 30, 2023, which have been submitted to grantor agencies may
differ slightly from amounts disclosed herein. The reports prepared for grantor agencies are typically
prepared at a later date and often reflect estimated of year- end accruals. The reports will agree at
termination of the grant as discrepancies noted are timing differences.
Title: LOANS
Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards presents the activity of all federal award
programs of the North Texas Municipal Water District ( the " District") for the year ended September 30,
2023. The District' s reporting entity is defined in Note 1 of the District' s Annual Comprehensive Financial
Report. The accompanying notes are an integral part of this Schedule. All federal awards received directly
by the primary government from federal agencies, as well as federal awards passed through other
government agencies, are included in the scope of the Federal Single Audit requirements of Title 2 U. S.
Code of Federal Regulations ( CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards ( Uniform Guidance) and are included on the Schedule of
Expenditures of Federal Awards. There were no funds passed to subrecipients.
De Minimis Rate Used: N
Rate Explanation: The District is not charging indirect costs to the programs.
The District has outstanding loans payable under the Clean Water State Revolving Loan Fund from the
Texas Water Development Board ( TWDB), as a pass- through agency for the Environmental Protection
Agency (CFDA 66.458) as of September 30, 2023 as follows: