Title: NOTE 1‐ GENERAL
Accounting Policies: The modified accrual basis of accounting is used for nonprofit organizations. This 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, except for certain compensated absences and claims and judgments, which are recognized when
the obligations are expected to be liquidated with expendable available financial resources.
De Minimis Rate Used: N
Rate Explanation: The Corporation does not utilize the de minimus 10% indirect cost rate. Indirect costs, where applicable, are
negotiated with the agency providing the grant award to the Corporation.
The accompanying Schedule of Expenditures of Federal Awards presents the activity of all federal award
programs of East Rio Hondo Water Supply Corporation, for the year ended December 31, 2023. The
information in this schedule is presented in accordance with the requirements of the Uniform Guidance, and
Audits of State, Local Governments, and Non‐Profit Organizations.
In accordance with Governmental Accounting Standards Board requirements, the Corporation has reviewed
other entities and activities for possible inclusion in the reporting entity and determined that there are none;
however, federal financial assistance passed through other governmental agencies is included on the schedule.
Title: NOTE 3‐ SUB‐RECIPIENTS
Accounting Policies: The modified accrual basis of accounting is used for nonprofit organizations. This 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, except for certain compensated absences and claims and judgments, which are recognized when
the obligations are expected to be liquidated with expendable available financial resources.
De Minimis Rate Used: N
Rate Explanation: The Corporation does not utilize the de minimus 10% indirect cost rate. Indirect costs, where applicable, are
negotiated with the agency providing the grant award to the Corporation.
During the year ended December 31, 2023, the Corporation had no sub‐recipients.
Title: NOTE 4‐ FEDERAL LOANS AND LOAN GUARANTEES
Accounting Policies: The modified accrual basis of accounting is used for nonprofit organizations. This 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, except for certain compensated absences and claims and judgments, which are recognized when
the obligations are expected to be liquidated with expendable available financial resources.
De Minimis Rate Used: N
Rate Explanation: The Corporation does not utilize the de minimus 10% indirect cost rate. Indirect costs, where applicable, are
negotiated with the agency providing the grant award to the Corporation.
During the year ended December 31, 2023, the Corporation had no outstanding federal loans payable or loan
guarantees.
Title: NOTE 5‐ FEDERALLY FUNDED INSURANCE
Accounting Policies: The modified accrual basis of accounting is used for nonprofit organizations. This 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, except for certain compensated absences and claims and judgments, which are recognized when
the obligations are expected to be liquidated with expendable available financial resources.
De Minimis Rate Used: N
Rate Explanation: The Corporation does not utilize the de minimus 10% indirect cost rate. Indirect costs, where applicable, are
negotiated with the agency providing the grant award to the Corporation.
During the year ended December 31, 2023, the Corporation had no federally funded insurance.
Title: NOTE 6‐ NONCASH AWARDS
Accounting Policies: The modified accrual basis of accounting is used for nonprofit organizations. This 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, except for certain compensated absences and claims and judgments, which are recognized when
the obligations are expected to be liquidated with expendable available financial resources.
De Minimis Rate Used: N
Rate Explanation: The Corporation does not utilize the de minimus 10% indirect cost rate. Indirect costs, where applicable, are
negotiated with the agency providing the grant award to the Corporation.
During the year ended December 31, 2023, the Corporation did not receive any non‐cash federal awards.