Audit 309078

Title: Determination of Federal Expenditures Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (Schedule) for the year ended December 31, 2023 includes the federal award activity of the Weaverland Valley Authority (Authority) 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 (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, some amounts presented in this Schedule may differ from amounts presented in, or used in the preparation of, the Authority’s financial statements. The accompanying schedule is presented using the cash basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The Authority has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. As required by the U.S. Department of Agriculture, interim financing from bank loans were utilized by the Authority to pay for eligible project costs. Expenditures from these bank loans will later be repaid from proceeds of the U.S. Department of Agriculture Rural Utilities Service (RUS) loan. Such expenditures incurred during the year ended December 31, 2023 are considered federal awards expended and reported on the Schedule, as required by the U.S. Department of Agriculture.