Audit 306502

Title: NOTE 1 – SIGNIFICANT ACCOUNTING POLICIES USED IN PREPARING THE SCHEDULE Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal grant activity of Wright City Water Supply Corporation under programs of the federal government for the year ended September 30, 2023 and is presented on the modified accrual basis of accounting. The information in this schedule is presented in accordance with the 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). Because the schedule presents only a selected portion of the operations of Wright City Water Supply Corporation, it is not intended to and does not present the financial position, changes in net assets or cash flows of Wright City Water Supply Corporation. De Minimis Rate Used: N Rate Explanation: Not considered necessary The accompanying schedule of expenditures of federal awards includes the federal grant activity of Wright City Water Supply Corporation under programs of the federal government for the year ended September 30, 2023 and is presented on the modified accrual basis of accounting. The information in this schedule is presented in accordance with the 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). Because the schedule presents only a selected portion of the operations of Wright City Water Supply Corporation, it is not intended to and does not present the financial position, changes in net assets or cash flows of Wright City Water Supply Corporation.

Title: NOTE 2 – INDIRECT COST RATES Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal grant activity of Wright City Water Supply Corporation under programs of the federal government for the year ended September 30, 2023 and is presented on the modified accrual basis of accounting. The information in this schedule is presented in accordance with the 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). Because the schedule presents only a selected portion of the operations of Wright City Water Supply Corporation, it is not intended to and does not present the financial position, changes in net assets or cash flows of Wright City Water Supply Corporation. De Minimis Rate Used: N Rate Explanation: Not considered necessary The Company did not elect to use the 10 percent de minimis indirect cost rate as covered in 2 CFR § 200.414.

Title: NOTE 3 – U.S. DEPARTMENT OF AGRICULTURE LOANS Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal grant activity of Wright City Water Supply Corporation under programs of the federal government for the year ended September 30, 2023 and is presented on the modified accrual basis of accounting. The information in this schedule is presented in accordance with the 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). Because the schedule presents only a selected portion of the operations of Wright City Water Supply Corporation, it is not intended to and does not present the financial position, changes in net assets or cash flows of Wright City Water Supply Corporation. De Minimis Rate Used: N Rate Explanation: Not considered necessary The Company has received two loans from the USDA. Under the Water and Waste Disposal Systems for Rural Communities Program. The loan balances outstanding at the beginning of the year, plus advances during the year are included in the federal expenditures presented in the schedule. The balance of the loans at December 31, 2023 was $87,769 for Loan 1, $1,198,000 for Loan 2, and $994,443 for Loan 3.