Notes to SEFA
Title: RELATIONSHIP TO FEDERAL AND STATE FINANCIAL REPORTS
Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (SEFA) presents the federal grant activity for North Alamo Water Supply Corporation (the Corporation). The reporting entity is defined in Note 1 of the Corporation's financial statements. The information in this schedule is presented in accordance with the 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 SEFA presents only a
selected portion of the operations of the Organization, it is not intended and does not present the financial position, changes in net assets, or cash flows of the corporation.
BASIS OF PRESENTATION
The accompanying Schedule of Expenditures of Federal Awards is presented using the accrual basis of accounting, which is described in Note 1 of the Corporation's financial statements. Such expenses are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenses are not allowable or are limited to reimbursement. Federal grants are generally considered earned to the extent expensed made under the provisions of the grant are made. Where applicable, the Corporation
has elected not to use the 10 percent de minimis indirect rate allowed under the Uniform Guidance.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate
The following is a reconciliation of the Schedule of Federal Awards with the amount reported on the Statement of Activities:
See the Notes to the SEFA for chart/table
Title: AMOUNTS PASSED THROUGH TO SUBRECIPIENTS
Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (SEFA) presents the federal grant activity for North Alamo Water Supply Corporation (the Corporation). The reporting entity is defined in Note 1 of the Corporation's financial statements. The information in this schedule is presented in accordance with the 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 SEFA presents only a
selected portion of the operations of the Organization, it is not intended and does not present the financial position, changes in net assets, or cash flows of the corporation.
BASIS OF PRESENTATION
The accompanying Schedule of Expenditures of Federal Awards is presented using the accrual basis of accounting, which is described in Note 1 of the Corporation's financial statements. Such expenses are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenses are not allowable or are limited to reimbursement. Federal grants are generally considered earned to the extent expensed made under the provisions of the grant are made. Where applicable, the Corporation
has elected not to use the 10 percent de minimis indirect rate allowed under the Uniform Guidance.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate
No amounts were passed through to sub-recipients for the year ended December 31, 2023.
Title: FEDERAL LOANS
Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (SEFA) presents the federal grant activity for North Alamo Water Supply Corporation (the Corporation). The reporting entity is defined in Note 1 of the Corporation's financial statements. The information in this schedule is presented in accordance with the 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 SEFA presents only a
selected portion of the operations of the Organization, it is not intended and does not present the financial position, changes in net assets, or cash flows of the corporation.
BASIS OF PRESENTATION
The accompanying Schedule of Expenditures of Federal Awards is presented using the accrual basis of accounting, which is described in Note 1 of the Corporation's financial statements. Such expenses are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenses are not allowable or are limited to reimbursement. Federal grants are generally considered earned to the extent expensed made under the provisions of the grant are made. Where applicable, the Corporation
has elected not to use the 10 percent de minimis indirect rate allowed under the Uniform Guidance.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate
The Corporation was approved by USDA-RD to receive $46 million to finance system-wide improvements to be completed in four phases. In 2022, the approved amount was increased to $58 million due to additional funds approved for Phase IL In 2023, the Corporation received advances on a $24,683,000 interim loan, which represented the approved funds for Phase II. The funds were obtained from interim loan financing provided by CoBank through the construction period and will be paid off with permanent financing to be provided by the USDA at time of maturity. The amount listed for this loan includes the beginning of the period loan balance plus proceeds used during the year.
See the Notes to the SEFA for chart/table