Title: Note 1: BASIS OF PRESENTATION
Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such
expenditures are recognized following the cost principles contain in the Uniform Guidance, wherein
certain types of expenditures are not allowable or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: Belforest Water System, Inc. has elected not to use the 10% de minimis indirect cost rate allowed
under the Uniform Guidance.
The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal
award activity of Belforest Water System, Inc., under programs of the federal government for the
year ended December 31, 2023. 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 Belforest Water System,
Inc., it is not intended to and does not present the financial position, changes in net assets, or cash
flows of Belforest Water System, Inc.
Title: Note 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such
expenditures are recognized following the cost principles contain in the Uniform Guidance, wherein
certain types of expenditures are not allowable or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: Belforest Water System, Inc. has elected not to use the 10% de minimis indirect 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 contain in the Uniform Guidance, wherein
certain types of expenditures are not allowable or are limited as to reimbursement.
Title: Note 3: INDIRECT COST RATE
Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such
expenditures are recognized following the cost principles contain in the Uniform Guidance, wherein
certain types of expenditures are not allowable or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: Belforest Water System, Inc. has elected not to use the 10% de minimis indirect cost rate allowed
under the Uniform Guidance.
Belforest Water System, Inc. has elected not to use the 10% de minimis indirect cost rate allowed
under the Uniform Guidance.
Title: Note 4: FEDERAL LOANS
Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such
expenditures are recognized following the cost principles contain in the Uniform Guidance, wherein
certain types of expenditures are not allowable or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: Belforest Water System, Inc. has elected not to use the 10% de minimis indirect cost rate allowed
under the Uniform Guidance.
The System was approved by the USDA in 2018 to receive loans totaling $2,300,000 to fund future
system improvements. Interim financing was obtained from a financial institution during the
construction period. During 2023, the System completed the construction and used all available funds
under the award. The balance of the loan at the end of the period was $2,300,000.
Balance at December 31, 2022 $ 876,709
Draws 1,423,291
Balance at December 31, 2023 $ 2,300,000
The outstanding principal balance of the USDA loan as of January 1, 2023, $876,709, was not included
as expenditures during the period under audit. Draws on the loan during the period subject to audit
are considered expenditures of federal awards.
Title: Note 5: SUB-RECIPIENTS
Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such
expenditures are recognized following the cost principles contain in the Uniform Guidance, wherein
certain types of expenditures are not allowable or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: Belforest Water System, Inc. has elected not to use the 10% de minimis indirect cost rate allowed
under the Uniform Guidance.
During the year ended December 31, 2023, the System has no sub-recipients.