Audit 316056

Title: NOTE 1 - BASIS OF PRESENTATION Accounting Policies: The accompanying schedule of expenditures of federal awards (the "Schedule") includes the federal grant activity of Evergreen Rural Water of Washington under programs of the federal government for the year ended December 31, 2023 and is presented on the accrual basis of accounting. 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 select portion of the operations of Evergreen Rural Water of Washington, it is not intended to, and does not, present the financial position, changes in net assets or cash flows of Evergreen Rural Water of Washington. Therefore, some amounts presented in the Schedule may differ from amounts presented in, or used in the preparation of, the financial statements. De Minimis Rate Used: N Rate Explanation: 1) Expenditures reported on the schedule of expenditures of federal awards are reported on the accrual 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. 2) The accompanying schedule of expenditures of federal awards includes indirect costs using a methodology approved by National Rural Water Association and the Organization. The Organization has not elected to use the 10% de minimis rate. The accompanying schedule of expenditures of federal awards (the "Schedule") includes the federal grant activity of Evergreen Rural Water of Washington under programs of the federal government for the year ended December 31, 2023 and is presented on the accrual basis of accounting. 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 select portion of the operations of Evergreen Rural Water of Washington, it is not intended to, and does not, present the financial position, changes in net assets or cash flows of Evergreen Rural Water of Washington. Therefore, some amounts presented in the Schedule may differ from amounts presented in, or used in the preparation of, the financial statements.

Title: NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: The accompanying schedule of expenditures of federal awards (the "Schedule") includes the federal grant activity of Evergreen Rural Water of Washington under programs of the federal government for the year ended December 31, 2023 and is presented on the accrual basis of accounting. 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 select portion of the operations of Evergreen Rural Water of Washington, it is not intended to, and does not, present the financial position, changes in net assets or cash flows of Evergreen Rural Water of Washington. Therefore, some amounts presented in the Schedule may differ from amounts presented in, or used in the preparation of, the financial statements. De Minimis Rate Used: N Rate Explanation: 1) Expenditures reported on the schedule of expenditures of federal awards are reported on the accrual 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. 2) The accompanying schedule of expenditures of federal awards includes indirect costs using a methodology approved by National Rural Water Association and the Organization. The Organization has not elected to use the 10% de minimis rate. Expenditures reported on the schedule of expenditures of federal awards are reported on the accrual 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. The accompanying schedule of expenditures of federal awards includes indirect costs using a methodology approved by National Rural Water Association and the Organization. The Organization has not elected to use the 10% de minimis rate.