Audit 315604

Title: BASIS OF PRESENTATION Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: Minnesota Rural Water Association, Inc. has not elected to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. The Association had an approved indirect cost rate of up to 16.43% for July 1, 2022 to June 30, 2023 and a rate of up to 16.24% for July 1, 2023 to June 30, 2024. The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal award activity of Minnesota Rural Water Association, Inc. 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 Minnesota Rural Water Association, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of Minnesota Rural Water Association, Inc.

Title: AGENCY OR PASS-THROUGH NUMBER Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: Minnesota Rural Water Association, Inc. has not elected to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. The Association had an approved indirect cost rate of up to 16.43% for July 1, 2022 to June 30, 2023 and a rate of up to 16.24% for July 1, 2023 to June 30, 2024. Minnesota Rural Water Association, Inc. received money passed through from multiple grantor agencies. There were no pass-through numbers identified with these grants identified above.