Audit 345653

Title: Basis of Presentation Accounting Policies: The expenditures included in the accompanying schedule were reported on the accrual basis of incurred. In addition, such expenditures are recognized following cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Expenditures reported include any property or equipment acquisitions incurred under federal programs. De Minimis Rate Used: N Rate Explanation: The District did not elect to use the 10-percent indirect cost rate allowed under the Uniform Guidance. The accompanying Schedule of Expenditures of Federal Awards (SEFA) includes the federal awards activity of the Las Virgenes Municipal Water District (the District) under federal programs of federal government for the year ended June 30, 2024. The information in this SEFA is presented in accordance with Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the SEFA presents only a selected portion of the operations of the District, it is not intended to and does not present the financial position, changes in net position or fund balance, or cash flows of the District. For the purposes of this schedule, federal financial assistance includes both federal financial assistances received directly from a federal agency, as well as federal funds received indirectly by the District from a nonfederal agency or other organization. Only that portion of program expenditures reimbursable with such federal funds are reported in the accompanying schedule. Program expenditures in excess of the maximum federal reimbursement authorized or the portion of the program expenditures that were funded with state, local or other non-federal funds are excluded from the accompanying schedule.