Title: Note 3: LOANS AND LOAN GUARANTEES
Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal spending of The Utilities Board of the City of Opp (the Board”) and is presented on the modified accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of the Uniform Guidance. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in preparation of, the basic financial statements. Because the schedule presents only a selected portion of the operations of the Board, it is not intended to and does not represent the financial position of the Board.
De Minimis Rate Used: N
Rate Explanation: The Board has not elected to use the 10% de minimis cost rate.
The Board had expenditures of $658,542 related to a loan program with the Water and Waste Disposal Systems for Rural Communities which are required to be reported on the schedule for the fiscal year ended September 30, 2024. As of September 30, 2024, the balance of outstanding bonds payable under the loan program was $7,353,000.
Title: Note 4: SUBRECIPIENTS
Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal spending of The Utilities Board of the City of Opp (the Board”) and is presented on the modified accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of the Uniform Guidance. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in preparation of, the basic financial statements. Because the schedule presents only a selected portion of the operations of the Board, it is not intended to and does not represent the financial position of the Board.
De Minimis Rate Used: N
Rate Explanation: The Board has not elected to use the 10% de minimis cost rate.
The Board did not provide federal funds to subrecipients for the fiscal year ending September 30, 2024.
Title: Note 5: FEDERAL PASS‐THROUGH FUNDS
Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal spending of The Utilities Board of the City of Opp (the Board”) and is presented on the modified accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of the Uniform Guidance. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in preparation of, the basic financial statements. Because the schedule presents only a selected portion of the operations of the Board, it is not intended to and does not represent the financial position of the Board.
De Minimis Rate Used: N
Rate Explanation: The Board has not elected to use the 10% de minimis cost rate.
The Board is also the subrecipient of federal funds that have been subjected to testing and are reported as expenditures and listed as federal pass‐through funds. Federal awards other than those indicated as “pass‐through” are considered direct.
Title: Note 6: CONTINGENCIES
Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal spending of The Utilities Board of the City of Opp (the Board”) and is presented on the modified accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of the Uniform Guidance. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in preparation of, the basic financial statements. Because the schedule presents only a selected portion of the operations of the Board, it is not intended to and does not represent the financial position of the Board.
De Minimis Rate Used: N
Rate Explanation: The Board has not elected to use the 10% de minimis cost rate.
Grant monies received and disbursed by the Board are for specific purposes and are subject to review by the grantor agencies. Such audits may result in requests for reimbursement due to disallowed expenditures. Based upon prior experience, the Board does not believe that such disallowance, if any, would have a material effect on the financial position of the Board. As of June 3, 2025, there were no known material questioned or disallowed costs as a result of grant audits in process or completed.
Title: Note 7: NONCASH AWARDS
Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal spending of The Utilities Board of the City of Opp (the Board”) and is presented on the modified accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of the Uniform Guidance. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in preparation of, the basic financial statements. Because the schedule presents only a selected portion of the operations of the Board, it is not intended to and does not represent the financial position of the Board.
De Minimis Rate Used: N
Rate Explanation: The Board has not elected to use the 10% de minimis cost rate.
During the year ended September 30, 2024, the Board did not receive any non‐cash federal awards.
Title: Note 8: FEDERALLY FUNDED INSURANCE
Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal spending of The Utilities Board of the City of Opp (the Board”) and is presented on the modified accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of the Uniform Guidance. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in preparation of, the basic financial statements. Because the schedule presents only a selected portion of the operations of the Board, it is not intended to and does not represent the financial position of the Board.
De Minimis Rate Used: N
Rate Explanation: The Board has not elected to use the 10% de minimis cost rate.
During the year ended September 30, 2024, the Board had no federally funded insurance.