Title: 1. Basis of Presentation
Accounting Policies: Expenditures reported on the Schedule are reported on the modified cash basis of accounting
De Minimis Rate Used: N
Rate Explanation: Did not use 10% de minimis cost rate
The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award
activity of the Great Lakes Water Authority (the Authority) under programs of the federal government for
the year ended June 30, 2024. 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 Authority, it is not intended to and does not
present the financial position, changes in net position or cash flows of the Authority.
Title: 2. Summary of Significant Accounting Policies
Accounting Policies: Expenditures reported on the Schedule are reported on the modified cash basis of accounting
De Minimis Rate Used: N
Rate Explanation: Did not use 10% de minimis cost rate
Expenditures reported on the Schedule are reported on the modified cash basis of accounting, which is
described as follows:
Basis of Accounting for U.S. Environmental Protection Agency Programs
In general, expenditures are reported in the Schedule when the Authority remits payment to a vendor
or contractor, rather than when an expense is incurred by the Authority in accordance with Generally
Accepted Accounting Principles (GAAP). Additionally, any amounts paid to subrecipients are included
when paid or transferred instead of when incurred. The Authority reports its expenditures using this
method based on guidance it received from the Michigan Department of Environment, Great Lakes,
and Energy (EGLE), which serves as the pass-through entity for all of the Authority's federally funded
loan programs.
Pre-Award Costs for U.S. Environmental Protection Agency Programs
In addition to the above, awarding agencies may approve reimbursement of costs related to projects
undertaken (and paid to vendors) in prior periods. In those cases, as the payments were not
previously reported as federal expenditures, they are reported on the Schedule in the period
reimbursement is approved by the awarding agency. 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. Passthrough entity identifying numbers are presented
where available.
Basis of Accounting for All Other Federal Grants
In general, the Authority reports expenditures in the Schedule when expenditures have been incurred
and when the funds have been obligated. Additionally, any amounts paid to subrecipients are
included when paid or transferred instead of when incurred.
The Authority incurred eligible expenses of $3,068,613 in fiscal year ended June 30, 2021,
$14,525,104 in fiscal year ended June 30, 2022 and $9,925,365 in fiscal year ended June 30, 2023
which were approved by EGLE. The Authority incurred eligible expenses of $1,878,061 in fiscal year
ended June 30, 2020, $102,850 in fiscal year ended June 30, 2021, $1,592,319 in fiscal year ended
June 30, 2022, and $113,534 in fiscal year ended June 30, 2023 which were approved by Michigan
State Police in fiscal year ended June 30, 2024.
Title: 3. Indirect Cost Rate
Accounting Policies: Expenditures reported on the Schedule are reported on the modified cash basis of accounting
De Minimis Rate Used: N
Rate Explanation: Did not use 10% de minimis cost rate
The Authority has not elected to use the 10% de minimis indirect cost rate.