Audit 317550

Title: BASIS OF PRESENTATION Accounting Policies: EXPENDITURES AND INDIRECT COST RATE De Minimis Rate Used: N Rate Explanation: The District has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of the Boothbay Region Water District 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 the District, it is not intended to and does not present the financial position, changes in net position, or cash flows of the District.

Title: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: EXPENDITURES AND INDIRECT COST RATE De Minimis Rate Used: N Rate Explanation: The District has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. Expenditures Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures follow cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Indirect Cost Rate The District has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.