Audit 339240

Title: NOTE 4 – PASS – THROUGH FUNDS Accounting Policies: NOTE 1 - BASIS OF PRESENTATION The accompanying Schedule of Expenditures of Federal Awards (the Schedule) presents the activity of all federal financial assistance programs of Sarpy County and Cities Wastewater Agency (the Agency). The Agency is a separate body corporate and politic pursuant to the Interlocal Cooperation Act. The Agency was formed to work with the Members, consultants, and other outside individuals and agencies as are necessary to plan, develop, and approve a master plan for the design of the Unified South Sarpy Wastewater System. Federal financial assistance received directly from federal agencies, as well as passed through other governmental agencies, is included on the Schedule. The accompanying schedule presents total expenditures for each federal award program in accordance with the U.S. Office of Management and Budget (OMB) Compliance Supplement and Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Federal program titles are reported as presented in the Federal Assistance Listing whenever possible. NOTE 2 - BASIS OF ACCOUNTING The Schedule is prepared on the accrual basis of accounting. De Minimis Rate Used: N Rate Explanation: NOTE 3 - DE MINIMIS INDIRECT COST RATE The Agency has elected not to charge the 10% de minimis indirect cost rate to its federal award program. In the current year, funds totaling $16,593,453 provided by the U.S. Environmental Protection Agency passed through the Nebraska Department of Environment and Energy Clean Water State Revolving Cluster in the form of a loan to the Agency. The Agency had a loan payable outstanding as of June 30, 2024, related to the capitalization grants for the clean water state revolving fund (Assistance Listing No. 66.458) in the amount of $69,800,000. The loan payable balance is not subject to continuing OMB Uniform Guidance compliance requirements. In the current year, funds totaling $10,838,613 provided by the U.S. Environmental Protection Agency passed through the Nebraska Department of Environment and Energy Water Infrastructure Finance and Innovation Act in the form of a loan to the Agency. The Agency had a loan payable outstanding as of June 30, 2024, related to Assistance Listing No. 66.958 in the amount of $10,838,613. The loan payable balance is not subject to continuing OMB Uniform Guidance compliance requirements.