Audit 31047

Title: BASIS OF PRESENTATION Accounting Policies: For purposes of the Schedule, expenditures for federal award programs are recognized on the accrual basis of accounting. Direct and indirect costs are based on amounts allowed and incurred in accordance with the grant/contract agreements and the Uniform Guidance. The Association uses a provisional indirect cost rate method throughout the period pending the establishment of a final rate after actual indirect and direct costs are determined. The Association has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The indirect cost rates charged to federal awards in 2022 ranged from 13.67% to 19.70% of direct costs. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The Association has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The indirect cost rates charged to federal awards in 2022 ranged from 13.67% to 19.70% of direct costs. The purpose of the Schedule of Expenditures of Federal Awards (the Schedule) is to present a summary of the activities of the Oklahoma Rural Water Association, Inc. and Subsidiary (collectively, the Association) for the year ended July 31, 2022, which have been financed by the U.S. Environmental Protection Agency and the U.S. Department of Agricultures Rural Utilities Service and Farm Service Agency through the National Rural Water Association, Inc. (NRWA), and U.S. Department of Energy through Oklahoma Department of Commerce. The information in the 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 activities of the Association, it is not intended to, and does not, present the consolidated financial position, changes in net assets, or cash flows of the Association.For purposes of the Schedule, federal awards include all grants and contracts the Association entered into directly with NRWA.