Audit 323686

Title: 2. Summary of Significant Accounting Policies Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal award activity of the Truckee River Watershed Council (Watershed Council) under programs of the U.S. federal government for the year ended December 31, 2023. The information in this Schedule is presented in accordance with the requirements of Title 2 US. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. The amounts reported as federal expenditures were obtained from the Watershed Council’s financial system. Because the Schedule of Expenditures of Federal Awards presents only a selected portion of the operations of the Watershed Council, it is not intended to and does not present the consolidated financial position, changes in net assets and cash flows of the Watershed Council. The Schedule includes all grants, contracts, and similar agreements entered into directly between the Watershed Council and agencies and departments of the U.S. federal government or passed through directly to the Watershed Council through agencies receiving federal funding. The Watershed Council did not pass through any grants to sub-recipients. De Minimis Rate Used: Y Rate Explanation: The Watershed Council has elected to use the 10 percent de minimus cost rate allowed under the Uniform Guidance 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, wherein certain types of expenditures are not allowable or are limited as to reimbursement.