Audit 308738

Title: NotesToSEFA Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of the Lake Livingston Water Supply Corporation under programs of the federal government for the year ended December 31, 2023. The information in this Schedule 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 Schedule presents only a selected portion of the operations of the Corporation, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Corporation. 2. For all federal programs, the Corporation uses the proprietary fund type specified in Governmental Accounting Standards. 3. The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. The proprietary fund types are accounted for using a current financial resources measurement focus. All federal grant funds were accounted for in a Proprietary Fund which is not a governmental fund type. The accrual basis of accounting is used for proprietary fund types. The basis of accounting recognizes revenues in the accounting period in which they become susceptible to accrual, i.e., both measurable and available, and expenditures in the accounting period in which the fund liability is incurred, if measurable. Federal grant funds are considered to be earned to the extent of expenditures made under the provisions of the grant, and, accordingly, when such funds are received, they are recorded as unearned revenues until earned. 4. The period of availability for federal grant funds for the purpose of liquidation of outstanding obligations made on or before the ending date of the federal project period extended 30 days beyond the federal project period ending date, in accordance with provisions in Section H, Period of Availability of Federal Funds, Part 3 Uniform Guidance Compliance Statement - Provisional 6/97. 5. Lake Livingston Water Supply Corporation has not elected to use the 10% de minimis indirect cost rate as allowed under Uniform Guidance. De Minimis Rate Used: N Rate Explanation: N/A The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of the Lake Livingston Water Supply Corporation under programs of the federal government for the year ended December 31, 2023. The information in this Schedule 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 Schedule presents only a selected portion of the operations of the Corporation, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Corporation. 2. For all federal programs, the Corporation uses the proprietary fund type specified in Governmental Accounting Standards. 3. The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. The proprietary fund types are accounted for using a current financial resources measurement focus. All federal grant funds were accounted for in a Proprietary Fund which is not a governmental fund type. The accrual basis of accounting is used for proprietary fund types. The basis of accounting recognizes revenues in the accounting period in which they become susceptible to accrual, i.e., both measurable and available, and expenditures in the accounting period in which the fund liability is incurred, if measurable. Federal grant funds are considered to be earned to the extent of expenditures made under the provisions of the grant, and, accordingly, when such funds are received, they are recorded as unearned revenues until earned. 4. The period of availability for federal grant funds for the purpose of liquidation of outstanding obligations made on or before the ending date of the federal project period extended 30 days beyond the federal project period ending date, in accordance with provisions in Section H, Period of Availability of Federal Funds, Part 3 Uniform Guidance Compliance Statement - Provisional 6/97. 5. Lake Livingston Water Supply Corporation has not elected to use the 10% de minimis indirect cost rate as allowed under Uniform Guidance.