Audit 357864

Title: 1. Scope of Audit Accounting Policies: 3. Summary of Significant Accounting Policies a. Basis of Accounting Expenditures reported on the Schedule are reported on the accrual basis of accounting, consistent with the manner in which GPA maintains its accounting records. All expenses and capital outlays are reported as expenditures. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Pass-through entity identifying numbers are presented where available. GPA does not elect to use the de- minimis indirect cost rate allowed under the Uniform Guidance. GPA recognizes contributions from the federal government when qualifying expenditures are incurred. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de-minimis cost rate. Guam Power Authority (GPA) is a component unit of the Government of Guam, a governmental entity established by the 1950 Organic Act of Guam, as amended, and has the powers of a body corporate, as defined in the act and local statutes. Only the transactions of GPA are included within the scope of the Single Audit.

Title: 2. Basis of Presentation Accounting Policies: 3. Summary of Significant Accounting Policies a. Basis of Accounting Expenditures reported on the Schedule are reported on the accrual basis of accounting, consistent with the manner in which GPA maintains its accounting records. All expenses and capital outlays are reported as expenditures. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Pass-through entity identifying numbers are presented where available. GPA does not elect to use the de- minimis indirect cost rate allowed under the Uniform Guidance. GPA recognizes contributions from the federal government when qualifying expenditures are incurred. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de-minimis cost rate. The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal grant activity of GPA 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 GPA, it is not intended to and does not present the net position, changes in net position, or cash flows of GPA.