Audit 359112

Title: Note A - Purpose of the Schedule: Accounting Policies: Reporting Entity The reporting entity is fully described in Note 1 to Walla Walla Basin Watershed Foundation's basic financial statements. The Schedule includes all federal programs administered by Walla Walla Basin Watershed Foundation for the year ended December 31, 2024. Basis of Presentation The accompanying schedule of expenditures of federal awards includes the federal award activity of Walla Walla Basin Watershed Foundation under programs of the federal government for the year ended December 31, 2024. The information in the 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 Walla Walla Basin Watershed Foundation, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the organization. Federal Financial Assistance Pursuant to the Single Audit Act and Uniform Guidance, federal financial assistance is defined as assistance provided by a federal agency, either directly or indirectly, in the form of grants, contracts, cooperative agreements, loans, loan guarantees, property, interest subsidies, insurance or direct appropriations. Accordingly, nonmonetary federal assistance, including federal surplus property, is included in federal financial assistance and, therefore, is reported on the Schedule, if applicable. Federal financial assistance does not include direct federal cash assistance to individuals. Solicited contracts between Walla Walla Basin Watershed Foundation and the federal government for which the federal government procures tangible goods or services are not considered to be federal financial assistance. Major Programs The Single Audit Act and Uniform Guidance establish criteria to be used in defining major programs. Major programs for Walla Walla Basin Watershed Foundation are those programs selected for testing by the auditor using a risk-assessment model, as well as certain minimum expenditure requirements, as outlined in Uniform Guidance. Programs with similar requirements may be grouped into a cluster for testing purposes. Basis of Accounting Federal awards are reported using the accrual basis of accounting. Revenues are recorded when earned and expenditures are recorded at the time liabilities are incurred. 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. Insurance Coverage For the fiscal year ended December 31, 2024, Walla Walla Basin Watershed Foundation had insurance coverage in effect comparable to other entities of similar size and circumstance. Indirect Cost Rate Walla Walla Basin Watershed Foundation has elected to use the 10 percent de minimis indirect cost rate as allowed under Uniform Guidance. De Minimis Rate Used: Y Rate Explanation: Walla Walla Basin Watershed Foundation has elected to use the 10 percent de minimis indirect cost rate as allowed under Uniform Guidance. The accompanying Schedule of Expenditures of Federal Awards (the "Schedule") is a supplementary schedule to the Walla Walla Basin Watershed Foundation's financial statements and is presented for purposes of additional analysis. Because the Schedule presents only a selected portion of the activities of the Walla Walla Basin Watershed Foundation, it is not intended to and does not present either the financial position, results of operations, or changes in net assets of Walla Walla Basin Watershed Foundation.

Title: Note B - Significant Accounting Policies: Accounting Policies: Reporting Entity The reporting entity is fully described in Note 1 to Walla Walla Basin Watershed Foundation's basic financial statements. The Schedule includes all federal programs administered by Walla Walla Basin Watershed Foundation for the year ended December 31, 2024. Basis of Presentation The accompanying schedule of expenditures of federal awards includes the federal award activity of Walla Walla Basin Watershed Foundation under programs of the federal government for the year ended December 31, 2024. The information in the 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 Walla Walla Basin Watershed Foundation, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the organization. Federal Financial Assistance Pursuant to the Single Audit Act and Uniform Guidance, federal financial assistance is defined as assistance provided by a federal agency, either directly or indirectly, in the form of grants, contracts, cooperative agreements, loans, loan guarantees, property, interest subsidies, insurance or direct appropriations. Accordingly, nonmonetary federal assistance, including federal surplus property, is included in federal financial assistance and, therefore, is reported on the Schedule, if applicable. Federal financial assistance does not include direct federal cash assistance to individuals. Solicited contracts between Walla Walla Basin Watershed Foundation and the federal government for which the federal government procures tangible goods or services are not considered to be federal financial assistance. Major Programs The Single Audit Act and Uniform Guidance establish criteria to be used in defining major programs. Major programs for Walla Walla Basin Watershed Foundation are those programs selected for testing by the auditor using a risk-assessment model, as well as certain minimum expenditure requirements, as outlined in Uniform Guidance. Programs with similar requirements may be grouped into a cluster for testing purposes. Basis of Accounting Federal awards are reported using the accrual basis of accounting. Revenues are recorded when earned and expenditures are recorded at the time liabilities are incurred. 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. Insurance Coverage For the fiscal year ended December 31, 2024, Walla Walla Basin Watershed Foundation had insurance coverage in effect comparable to other entities of similar size and circumstance. Indirect Cost Rate Walla Walla Basin Watershed Foundation has elected to use the 10 percent de minimis indirect cost rate as allowed under Uniform Guidance. De Minimis Rate Used: Y Rate Explanation: Walla Walla Basin Watershed Foundation has elected to use the 10 percent de minimis indirect cost rate as allowed under Uniform Guidance. The reporting entity is fully described in Note 1 to Walla Walla Basin Watershed Foundation's basic financial statements. The Schedule includes all federal programs administered by Walla Walla Basin Watershed Foundation for the year ended December 31, 2024. Basis of Presentation The accompanying schedule of expenditures of federal awards includes the federal award activity of Walla Walla Basin Watershed Foundation under programs of the federal government for the year ended December 31, 2024. The information in the 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 Walla Walla Basin Watershed Foundation, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the organization. Federal Financial Assistance Pursuant to the Single Audit Act and Uniform Guidance, federal financial assistance is defined as assistance provided by a federal agency, either directly or indirectly, in the form of grants, contracts, cooperative agreements, loans, loan guarantees, property, interest subsidies, insurance or direct appropriations. Accordingly, nonmonetary federal assistance, including federal surplus property, is included in federal financial assistance and, therefore, is reported on the Schedule, if applicable. Federal financial assistance does not include direct federal cash assistance to individuals. Solicited contracts between Walla Walla Basin Watershed Foundation and the federal government for which the federal government procures tangible goods or services are not considered to be federal financial assistance. Major Programs The Single Audit Act and Uniform Guidance establish criteria to be used in defining major programs. Major programs for Walla Walla Basin Watershed Foundation are those programs selected for testing by the auditor using a risk-assessment model, as well as certain minimum expenditure requirements, as outlined in Uniform Guidance. Programs with similar requirements may be grouped into a cluster for testing purposes. Basis of Accounting Federal awards are reported using the accrual basis of accounting. Revenues are recorded when earned and expenditures are recorded at the time liabilities are incurred. 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. Insurance Coverage For the fiscal year ended December 31, 2024, Walla Walla Basin Watershed Foundation had insurance coverage in effect comparable to other entities of similar size and circumstance. Indirect Cost Rate Walla Walla Basin Watershed Foundation has elected to use the 10 percent de minimis indirect cost rate as allowed under Uniform Guidance.