Audit 329868

FY End
2024-06-30
Total Expended
$5.20M
Findings
0
Programs
1
Year: 2024 Accepted: 2024-11-25
Auditor: Sb & Company LLC

Organization Exclusion Status:

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Findings

No findings recorded

Contacts

Name Title Type
SP9FP3K5LZS4 Munetsi Musara Auditee
3012068565 Chris Lehman Auditor
No contacts on file

Notes to SEFA

Title: BASIS OF PRESENTATION Accounting Policies: All Federal grant operations of the Washington Suburban Sanitary Commission (the Commission) are included in the scope of the Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (the Single Audit or Uniform Guidance). The Single Audit was performed in accordance with the provisions of the Office of Management and Budget (OMB) Compliance Supplement (the Compliance Supplement). Compliance testing of all requirements, as described in the Compliance Supplement, was performed for the major Federal grant program noted below. The program on the accompanying schedule of expenditures of Federal awards (the Schedule) represent all Federal award programs and other grants with fiscal year 2024 or non-cash expenditure activities. For Single Audit testing, the Federal award program with 2024 cash and non-cash expenditures were tested to ensure coverage of at least 20% of Federally granted funds. Actual coverage was 100%. Identification of major program: Major Program Federal Assistance Listing Number Federal Expenditures Capitalization Grants for Clean Water-State Revolving Loan Fund Sewer Basin Reconstruction Program #1 66.658 $ 5,200,323 Expenditures reported on the Schedule 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. The Commission has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The Commission has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. The Schedule includes the activity of the Commission’s Federal financial award program and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with requirements of the Compliance Supplement. Therefore, some amounts presented in the schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements (See Note 4).
Title: FEDERAL GRANT/LOAN Accounting Policies: All Federal grant operations of the Washington Suburban Sanitary Commission (the Commission) are included in the scope of the Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (the Single Audit or Uniform Guidance). The Single Audit was performed in accordance with the provisions of the Office of Management and Budget (OMB) Compliance Supplement (the Compliance Supplement). Compliance testing of all requirements, as described in the Compliance Supplement, was performed for the major Federal grant program noted below. The program on the accompanying schedule of expenditures of Federal awards (the Schedule) represent all Federal award programs and other grants with fiscal year 2024 or non-cash expenditure activities. For Single Audit testing, the Federal award program with 2024 cash and non-cash expenditures were tested to ensure coverage of at least 20% of Federally granted funds. Actual coverage was 100%. Identification of major program: Major Program Federal Assistance Listing Number Federal Expenditures Capitalization Grants for Clean Water-State Revolving Loan Fund Sewer Basin Reconstruction Program #1 66.658 $ 5,200,323 Expenditures reported on the Schedule 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. The Commission has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The Commission has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. On May 26, 2023, the Commission received an approval from the Maryland Water Quality Financing Administration (the Administration) for a loan of $25,000,000 in total, of which $2,500,000 was forgiven as of June 30, 2024. This leaves a loan balance of $22,500,0000 at an interest rate of 0.80% per annum. Principal loan repayment will begin on February 1, 2025. The purpose of the loan was for a construction project at the Commission’s Piscataway Wastewater Treatment Plant for BioEnergy equipment and systems. As of June 30, 2024, the Commission had spent $22,500,000 towards the project. On November 25, 2020, the Commission received an approval for a loan of $150,174,502 from the Administration at an interest rate of 0.40% per annum. Principal loan repayment began on February 1, 2023. The purpose of the loan was for construction for the comprehensive rehabilitation and replacement of sewer mains and manholes across the sanitary district. As of June 30, 2024, the Commission had spent $57,380,241 towards the project. On April 14, 2016, the Commission received an approval for a loan of $53,823,568 from the Administration at an interest rate of 1.40% per annum. Interest payment is paid semiannually and commenced on August 1, 2016. Principal loan repayment began on February 1, 2019. The purpose of the loan was for two construction projects at DC Water Blue Plains Wastewater Treatment Plant. The first project was a Tunnel Dewatering Pump Station at a cost of $7,124,995 and the second project was an Enhanced Clarification Facility at a cost of $46,698,573. As of June 30, 2024, the Commission had spent $53,823,568 towards the project.
Title: RECONCILIATION TO BASIC FINANCIAL STATEMENTS Accounting Policies: All Federal grant operations of the Washington Suburban Sanitary Commission (the Commission) are included in the scope of the Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (the Single Audit or Uniform Guidance). The Single Audit was performed in accordance with the provisions of the Office of Management and Budget (OMB) Compliance Supplement (the Compliance Supplement). Compliance testing of all requirements, as described in the Compliance Supplement, was performed for the major Federal grant program noted below. The program on the accompanying schedule of expenditures of Federal awards (the Schedule) represent all Federal award programs and other grants with fiscal year 2024 or non-cash expenditure activities. For Single Audit testing, the Federal award program with 2024 cash and non-cash expenditures were tested to ensure coverage of at least 20% of Federally granted funds. Actual coverage was 100%. Identification of major program: Major Program Federal Assistance Listing Number Federal Expenditures Capitalization Grants for Clean Water-State Revolving Loan Fund Sewer Basin Reconstruction Program #1 66.658 $ 5,200,323 Expenditures reported on the Schedule 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. The Commission has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The Commission has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. The total expenditures in the Schedule are included as Bonds and notes payable in the Commission’s Balance Sheets and Capital Grant Contributions in the Commission’s Statement of Revenues, Expenses and Changes in Net Position for the year ended June 30, 2024.