Audit 346627

Accounting Policies: A. Summary of Significant Accounting Policies Basis of Presentation The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal award activity of the Water Works and Sewer Board of the City of Demopolis under programs of the federal government for the year ended September 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 Water Works and Sewer Board of the City of Demopolis, it is not intended to and does not present the financial position or changes in net position of the Water Works and Sewer Board of the City of Demopolis. Basis of Accounting Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance wherein certain types of expenditures are not allowed or are limited as to reimbursement. De Minimis Rate Used: Y Rate Explanation: The Board elected to use the 10-percent de minimis indirect cost rate as allowed in the Uniform Guidance.