Audit 295393

Accounting Policies: BASIS OF PRESENTATION The above schedule of expenditures of federal awards includes the federal grant activity of Tohono O’Odham Utility Authority (the Authority) under programs of the federal governments for the year ended September 30, 2023. The information in the schedule of expenditures of federal awards 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 of expenditures of federal awards presents only a selected portion of the operations of the Authority, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Authority. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The Authority furnishes electric, water, telephone, propane services, internet, cellular telecommunications, and wastewater within the Tohono O’Odham Nation. Periodically, the Authority receives federal loans from the Rural Utilities Service (RUS) of the U.S. Department of Agriculture to reimburse the Authority for funds expended to construct facilities necessary to provide the electric and telephone services described above. The federal loans are considered expended when disbursed from the Authority’s RUS construction fund. Disbursements are made only on items specifically approved by RUS. Grant funds are considered expended when expenditures are made for approved purposes. Grant funds relating to construction are treated as contribution in aid to construction. When federal loans are received, they are accounted for in the department of the Authority in which the related construction took place. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.