Audit 317879

Accounting Policies: 1. BASIS OF PRESENTATION The accompanying schedule of expenditures of federal and state awards includes the federal and state award activity of the Public Service Board - El Paso Water Utilities (EPWater), a component unit of the City of El Paso, under programs of the federal and state governments for the year ended February 29, 2024. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulation Part 200, Uniform Administrative Requirements, Cost principles, and Audit Requirements for Federal Awards (uniform Guidance) and the State of Texas Uniform Grant Management Standards. Because the schedule presents only a selected portion of the operations of the EPWater, it is not intended to and does not present the financial position, changes in net position, or cash flows of EPWater. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Expenditures reported on the schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance and the State of Texas Uniform Grant Management Standards wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: 3. INDIRECT COST RATE EPWater has elected to not charge indirect costs to the grant.