Audit 308620

Title: Loan Balances Accounting Policies: PURPOSE OF THE SCHEDULE The Uniform Guidance requires a Schedule of Expenditures of Federal Awards showing total expenditures for each federal award program. SIGNIFICANT ACCOUNTING POLICIES 1. REPORTING ENTITY The accompanying schedule includes all federal award programs of Presque Isle Utilities District for the fiscal year ended December 31, 2023. The reporting entity is defined in the Notes to the Financial Statements of Presque Isle Utilities District 2. BASIS OF PRESENTATION The information in this schedule is presented in accordance with the requirements of the Uniform Guidance. a. Federal financial assistance is defined as assistance provided by federal agency, either directly or indirectly, in the form of grants, contracts, cooperative agreements, loans, loan guarantees, property, interest subsidies, insurance or direct appropriations. b. The Uniform Guidance establishes the level of expenditures to be used in defining major federal financial award programs. Major programs for the Organization have been identified in the Schedule of Findings and Questioned Costs. 3. BASIS OF ACCOUNTING The information presented in the Schedule of Expenditures of Federal Awards is presented on a basis consistent with the Organization’s general purpose financial statements. The grants included are all accounted for on a modified accrual basis of accounting which is described in the notes to the general-purpose financial statements. De Minimis Rate Used: N Rate Explanation: The Organization has not elected to use the 10% De Minimis Cost rate for the year ended December 31, 2023. The District maintains a loan with the U.S. Department of Agriculture. The balance as of December 31, 2023 was as follows: Loan Balance 23-052-464126669 $9,442,889 Because this loan has no continuing compliance requirements it has not been included on the District’s Schedule of Expenditures of Federal Awards.