Title: Note 1 - Basis of Presentation
Accounting Policies: The Schedule was prepared on the accrual basis of accounting and 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 Administrative Requirements). Some amounts presented in this schedule may differ from the amounts presented in, or used in preparation of the financial statements.
De Minimis Rate Used: N
Rate Explanation: The Utilities has elected not to use the 10 percent de minimis cost rate allowed under Uniform Guidance.
The amounts reported in the accompanying Schedule were obtained from the Utilities’ general ledger.
Because the Schedule presents only a selected portion of the operations, it is not intended to and does not
present the financial position, changes in net position and cash flows of the Utilities. For purposes of the
schedule, federal awards include all grants, contracts, and similar agreements entered into directly with the
federal government and other pass through entities. Payments received for goods or services provided as
a vendor do not constitute federal awards for purposes of the Schedule. The Utilities has obtained
Assistance Listing Numbers (ALN) to ensure that all programs have been identified in the Schedule. ALNs
have been appropriately listed by applicable programs. Federal programs with different ALNs that are
closely related because they share common compliance requirements are defined as a cluster by the
Uniform Guidance. One cluster was identified in the Schedule:
Drinking Water State Revolving Fund - This cluster includes providing low interest loans to
eligible recipients for drinking water infrastructure projects.
Title: Note 2 - Basis of Accounting
Accounting Policies: The Schedule was prepared on the accrual basis of accounting and 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 Administrative Requirements). Some amounts presented in this schedule may differ from the amounts presented in, or used in preparation of the financial statements.
De Minimis Rate Used: N
Rate Explanation: The Utilities has elected not to use the 10 percent de minimis cost rate allowed under Uniform Guidance.
The Schedule was prepared on the accrual basis of accounting and 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 Administrative Requirements). Some
amounts presented in this schedule may differ from the amounts presented in, or used in preparation of,
the financial statements.
Title: Note 3 - Relationship of the Schedule to Program Financial Reports
Accounting Policies: The Schedule was prepared on the accrual basis of accounting and 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 Administrative Requirements). Some amounts presented in this schedule may differ from the amounts presented in, or used in preparation of the financial statements.
De Minimis Rate Used: N
Rate Explanation: The Utilities has elected not to use the 10 percent de minimis cost rate allowed under Uniform Guidance.
The amounts pass-through reflected in the financial reports submitted to the awarding federal and/or
agency and the schedule may differ. Some of the factors that may account for any difference include the
following:
- The Utilities’ fiscal year end may differ from the program’s year end.
- Accruals recognized in the Schedule, because of year end procedures, may not be reported in
the program financial reports until the next program reporting period.
- Fixed asset purchases and the resultant depreciation charges are recognized as property and
equipment, net in the Utilities’ financial statements and as expenditures in the program financial
reports.
Title: Note 4 - Reporting Entity
Accounting Policies: The Schedule was prepared on the accrual basis of accounting and 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 Administrative Requirements). Some amounts presented in this schedule may differ from the amounts presented in, or used in preparation of the financial statements.
De Minimis Rate Used: N
Rate Explanation: The Utilities has elected not to use the 10 percent de minimis cost rate allowed under Uniform Guidance.
The Utilities’ reporting entity is fully described in Note 1 to the financial statements
Title: Note 5 - Indirect Cost Rate
Accounting Policies: The Schedule was prepared on the accrual basis of accounting and 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 Administrative Requirements). Some amounts presented in this schedule may differ from the amounts presented in, or used in preparation of the financial statements.
De Minimis Rate Used: N
Rate Explanation: The Utilities has elected not to use the 10 percent de minimis cost rate allowed under Uniform Guidance.
The Utilities has elected not to use the 10 percent de minimis indirect cost rate allowed under Uniform
Guidance.
Title: Note 6 - Subrecipients
Accounting Policies: The Schedule was prepared on the accrual basis of accounting and 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 Administrative Requirements). Some amounts presented in this schedule may differ from the amounts presented in, or used in preparation of the financial statements.
De Minimis Rate Used: N
Rate Explanation: The Utilities has elected not to use the 10 percent de minimis cost rate allowed under Uniform Guidance.
There were no awards passed through to subrecipients.
Title: Note 7 - Recognition of Federal Expenditures
Accounting Policies: The Schedule was prepared on the accrual basis of accounting and 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 Administrative Requirements). Some amounts presented in this schedule may differ from the amounts presented in, or used in preparation of the financial statements.
De Minimis Rate Used: N
Rate Explanation: The Utilities has elected not to use the 10 percent de minimis cost rate allowed under Uniform Guidance.
The Utilities incurred $3,911,581 of ADEM related expenditures in fiscal year 2024. In accordance with Drinking Water State Revolving Funds guidelines, the Utilities recorded the eligible expenditures in its fiscal year 2024 Schedule of Expenditures of Federal Awards when its requisition and payment request was approved by ADEM
Title: Note 8 - Loans Outstanding
Accounting Policies: The Schedule was prepared on the accrual basis of accounting and 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 Administrative Requirements). Some amounts presented in this schedule may differ from the amounts presented in, or used in preparation of the financial statements.
De Minimis Rate Used: N
Rate Explanation: The Utilities has elected not to use the 10 percent de minimis cost rate allowed under Uniform Guidance.
The Utilities’ had an ending loan balance of $37,080,000 as of September 30, 2024 under the Drinking Water State Revolving Fund loan program under ALN $66.468 passed through the Alabama Department of Environmental Management.