Audit 319680

Title: SEFA NOTES Accounting Policies: The accompanying Schedule of expenditures of Federal Awards is presented using the accrual basis of accounting, which is described in Note 1 to the System’s basic financial statements. De Minimis Rate Used: N Rate Explanation: Nebo Water System, Inc. has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. Note A – Single Audit Requirements In July 1996, the Single Audit Act Amendments of 1996 (1996 Act) were enacted and superseded the Single Audit Act of 1984. In June 1997 OMB issued a revised Circular A-133, Audits of States, Local Governments, and Non_x0002_Profit Organizations, to implement the changes from the 1996 Act and to rescind Circular A-128. On 06/27/2003 OMB Circular A-133 was revised for fiscal years ending 12/31/2003 and forward. For 2015 and forward OMB Circular A-133 has been superseded in its entirety by OMB’s Uniform Administrative Requirements, Cost Principles, and Audit Requirement for Federal Awards (Uniform Guidance) which changes the single audit threshold to $750,000. The business type funds used to account for these funds use the accrual basis of accounting. 1.) General The accompanying Schedule of Expenditures of Federal Awards presents the activity of all federal awards programs of the System. The System reporting entity is defined in Note 1 to the System’s basic financial statements. Federal awards received directly from federal agencies, as well as federal awards passed through other governmental agencies, are included on the schedule. 2.) Basis of Accounting The accompanying Schedule of expenditures of Federal Awards is presented using the accrual basis of accounting, which is described in Note 1 to the System’s basic financial statements. 3.) Relationship to Basic Financial Statements Federal award revenues are reported in the District’s basic financial statements as follows: General: Coronavirus state and local fiscal recovery funds $ 1,087,819 Total $ 1,087,819 Amounts reported in the accompanying schedule agree with the amounts reported in the related federal financial reports except for changes made to reflect amounts in accordance with U.S. generally accepted principles. 4.) Federal Awards “Federal awards” do not include the System’s other state grants. 5.) Indirect Cost Rate Nebo Water System, Inc. has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. Presented for purposes of additional analysis only