Title: Note 1: BASIS OF PRESENTATION
Accounting Policies: This Schedule was prepared on the modified accrual basis of accounting. Under the modified accrual
basis of accounting, revenues are recognized in the accounting period in which they become both
measurable and available to finance expenditures of the current period. Available means collectible
within the current period or soon enough thereafter to be used to pay liabilities of the current period.
Expenditures are recorded when the related liability is incurred. In applying the susceptible‐to‐accrual
concept to intergovernmental revenues, the legal and contractual requirements of the numerous individual programs are used as guidance. There are, however, essentially two types of such
revenues. In one, monies must be expended on the specific purpose or project before any amounts
will be paid to the Authority; therefore, revenues are recognized based upon the expenditures
recorded. In the other, monies are virtually unrestricted as to purpose of expenditure and
substantially irrevocable; i.e., revocable only for failure to comply with prescribed compliance
requirements, such as with equal employment opportunity. These resources are reflected as
revenues at the time of receipt or earlier if they meet the availability criteria.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The accompanying Schedule of Expenditures of Federal Awards (the Schedule) summarizes the
federal expenditures of the Authority under programs of the federal government for the year ended
September 30, 2023. The amounts reported as federal expenditures were obtained from the
Authority’s trial balance. Because the Schedule 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 position
and cash flows of the Authority.
For purposes of the Schedule, federal awards include all grants, contracts, and similar agreements
entered into directly with the federal government and other pass‐through entities. Payments
received for goods or services provided as a vendor do not constitute federal awards for purposes of
the schedule. The Authority has obtained Assistance Listing (AL) numbers to ensure that all programs
have been identified in the Schedule. Federal programs with different AL numbers that are closely
related because they share common compliance requirements are defined as a cluster by the
Uniform Guidance. One cluster is separately identified in the Schedule and is the following:
Clean Water State Revolving Fund Cluster
This cluster includes awards that enable States to encourage construction of wastewater
treatment facilities to meet enforceable requirements of the Clean Water Act, increase the
emphasis on nonpoint source pollution control and protection of estuaries, and establish
permanent financing institutions in each State to provide continuing sources of financing to
maintain water quality.
Title: Note 2: RELATIONSHIP OF THE SCHEDULE TO PROGRAM FINANCIAL REPORTS
Accounting Policies: This Schedule was prepared on the modified accrual basis of accounting. Under the modified accrual
basis of accounting, revenues are recognized in the accounting period in which they become both
measurable and available to finance expenditures of the current period. Available means collectible
within the current period or soon enough thereafter to be used to pay liabilities of the current period.
Expenditures are recorded when the related liability is incurred. In applying the susceptible‐to‐accrual
concept to intergovernmental revenues, the legal and contractual requirements of the numerous individual programs are used as guidance. There are, however, essentially two types of such
revenues. In one, monies must be expended on the specific purpose or project before any amounts
will be paid to the Authority; therefore, revenues are recognized based upon the expenditures
recorded. In the other, monies are virtually unrestricted as to purpose of expenditure and
substantially irrevocable; i.e., revocable only for failure to comply with prescribed compliance
requirements, such as with equal employment opportunity. These resources are reflected as
revenues at the time of receipt or earlier if they meet the availability criteria.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The amounts reflected in the financial reports submitted to the awarding Federal, State and/or passthrough
agencies and the Schedule may differ. Some of the factors that may account for any
difference include the following:
The Authority’s fiscal year end may differ from the program's year end.
Accruals recognized in the Schedule, because of year‐end procedures, may not be reported in
the program financial reports until the next program reporting period.
Fixed asset purchases and the resultant depreciation charges are recognized as fixed assets in
the Authority’s financial statements and as expenditures in the program financial reports.
Title: Note 3: FEDERAL PASS‐THROUGH FUNDS
Accounting Policies: This Schedule was prepared on the modified accrual basis of accounting. Under the modified accrual
basis of accounting, revenues are recognized in the accounting period in which they become both
measurable and available to finance expenditures of the current period. Available means collectible
within the current period or soon enough thereafter to be used to pay liabilities of the current period.
Expenditures are recorded when the related liability is incurred. In applying the susceptible‐to‐accrual
concept to intergovernmental revenues, the legal and contractual requirements of the numerous individual programs are used as guidance. There are, however, essentially two types of such
revenues. In one, monies must be expended on the specific purpose or project before any amounts
will be paid to the Authority; therefore, revenues are recognized based upon the expenditures
recorded. In the other, monies are virtually unrestricted as to purpose of expenditure and
substantially irrevocable; i.e., revocable only for failure to comply with prescribed compliance
requirements, such as with equal employment opportunity. These resources are reflected as
revenues at the time of receipt or earlier if they meet the availability criteria.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The Authority is the sub‐recipient of federal funds that have been subjected to testing and are
reported as expenditures and listed as federal pass‐through funds.
Title: Note 5: CONTINGENCIES
Accounting Policies: This Schedule was prepared on the modified accrual basis of accounting. Under the modified accrual
basis of accounting, revenues are recognized in the accounting period in which they become both
measurable and available to finance expenditures of the current period. Available means collectible
within the current period or soon enough thereafter to be used to pay liabilities of the current period.
Expenditures are recorded when the related liability is incurred. In applying the susceptible‐to‐accrual
concept to intergovernmental revenues, the legal and contractual requirements of the numerous individual programs are used as guidance. There are, however, essentially two types of such
revenues. In one, monies must be expended on the specific purpose or project before any amounts
will be paid to the Authority; therefore, revenues are recognized based upon the expenditures
recorded. In the other, monies are virtually unrestricted as to purpose of expenditure and
substantially irrevocable; i.e., revocable only for failure to comply with prescribed compliance
requirements, such as with equal employment opportunity. These resources are reflected as
revenues at the time of receipt or earlier if they meet the availability criteria.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
Grant monies received and disbursed by the Authority are for specific purposes and are subject to
review by the grantor agencies. Such audits may result in requests for reimbursement due to
disallowed expenditures. Based upon prior experience, the Authority does not believe that such
disallowance, if any, would have a material effect on the financial position of the Authority. As of
September 30, 2023, there were no material questioned or disallowed costs as a result of grant audits
in process or completed.
Title: Note 6: INDIRECT COST
Accounting Policies: This Schedule was prepared on the modified accrual basis of accounting. Under the modified accrual
basis of accounting, revenues are recognized in the accounting period in which they become both
measurable and available to finance expenditures of the current period. Available means collectible
within the current period or soon enough thereafter to be used to pay liabilities of the current period.
Expenditures are recorded when the related liability is incurred. In applying the susceptible‐to‐accrual
concept to intergovernmental revenues, the legal and contractual requirements of the numerous individual programs are used as guidance. There are, however, essentially two types of such
revenues. In one, monies must be expended on the specific purpose or project before any amounts
will be paid to the Authority; therefore, revenues are recognized based upon the expenditures
recorded. In the other, monies are virtually unrestricted as to purpose of expenditure and
substantially irrevocable; i.e., revocable only for failure to comply with prescribed compliance
requirements, such as with equal employment opportunity. These resources are reflected as
revenues at the time of receipt or earlier if they meet the availability criteria.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The Authority operates under predetermined fixed indirect cost rates that are effective through
September 30, 2023. The base rate for indirect cost recoveries is 37.44% for the year ended
September 30, 2023.
Title: Note 7: NONCASH ASSISTANCE
Accounting Policies: This Schedule was prepared on the modified accrual basis of accounting. Under the modified accrual
basis of accounting, revenues are recognized in the accounting period in which they become both
measurable and available to finance expenditures of the current period. Available means collectible
within the current period or soon enough thereafter to be used to pay liabilities of the current period.
Expenditures are recorded when the related liability is incurred. In applying the susceptible‐to‐accrual
concept to intergovernmental revenues, the legal and contractual requirements of the numerous individual programs are used as guidance. There are, however, essentially two types of such
revenues. In one, monies must be expended on the specific purpose or project before any amounts
will be paid to the Authority; therefore, revenues are recognized based upon the expenditures
recorded. In the other, monies are virtually unrestricted as to purpose of expenditure and
substantially irrevocable; i.e., revocable only for failure to comply with prescribed compliance
requirements, such as with equal employment opportunity. These resources are reflected as
revenues at the time of receipt or earlier if they meet the availability criteria.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The Authority did not receive any federal noncash assistance for the fiscal year ended September 30,
2023.
Title: Note 9: SUBRECIPIENTS
Accounting Policies: This Schedule was prepared on the modified accrual basis of accounting. Under the modified accrual
basis of accounting, revenues are recognized in the accounting period in which they become both
measurable and available to finance expenditures of the current period. Available means collectible
within the current period or soon enough thereafter to be used to pay liabilities of the current period.
Expenditures are recorded when the related liability is incurred. In applying the susceptible‐to‐accrual
concept to intergovernmental revenues, the legal and contractual requirements of the numerous individual programs are used as guidance. There are, however, essentially two types of such
revenues. In one, monies must be expended on the specific purpose or project before any amounts
will be paid to the Authority; therefore, revenues are recognized based upon the expenditures
recorded. In the other, monies are virtually unrestricted as to purpose of expenditure and
substantially irrevocable; i.e., revocable only for failure to comply with prescribed compliance
requirements, such as with equal employment opportunity. These resources are reflected as
revenues at the time of receipt or earlier if they meet the availability criteria.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The Authority provided federal funds to subrecipients totaling $17,643,125 for the fiscal year ended
September 30, 2023.
Title: Note 10: LOANS AND LOAN GUARANTEES
Accounting Policies: This Schedule was prepared on the modified accrual basis of accounting. Under the modified accrual
basis of accounting, revenues are recognized in the accounting period in which they become both
measurable and available to finance expenditures of the current period. Available means collectible
within the current period or soon enough thereafter to be used to pay liabilities of the current period.
Expenditures are recorded when the related liability is incurred. In applying the susceptible‐to‐accrual
concept to intergovernmental revenues, the legal and contractual requirements of the numerous individual programs are used as guidance. There are, however, essentially two types of such
revenues. In one, monies must be expended on the specific purpose or project before any amounts
will be paid to the Authority; therefore, revenues are recognized based upon the expenditures
recorded. In the other, monies are virtually unrestricted as to purpose of expenditure and
substantially irrevocable; i.e., revocable only for failure to comply with prescribed compliance
requirements, such as with equal employment opportunity. These resources are reflected as
revenues at the time of receipt or earlier if they meet the availability criteria.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The Authority did not have any loans or loan guarantee programs required to be reported on the
Schedule.
Title: Note 11: FEDERALLY FUNDED INSURANCE
Accounting Policies: This Schedule was prepared on the modified accrual basis of accounting. Under the modified accrual
basis of accounting, revenues are recognized in the accounting period in which they become both
measurable and available to finance expenditures of the current period. Available means collectible
within the current period or soon enough thereafter to be used to pay liabilities of the current period.
Expenditures are recorded when the related liability is incurred. In applying the susceptible‐to‐accrual
concept to intergovernmental revenues, the legal and contractual requirements of the numerous individual programs are used as guidance. There are, however, essentially two types of such
revenues. In one, monies must be expended on the specific purpose or project before any amounts
will be paid to the Authority; therefore, revenues are recognized based upon the expenditures
recorded. In the other, monies are virtually unrestricted as to purpose of expenditure and
substantially irrevocable; i.e., revocable only for failure to comply with prescribed compliance
requirements, such as with equal employment opportunity. These resources are reflected as
revenues at the time of receipt or earlier if they meet the availability criteria.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The Authority did not have any federally funded insurance required to be reported on the Schedule
for the fiscal year ended September 30, 2023.