Audit 363807

Title: BASIS OF PRESENTATION Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) includes the federal award activity of Pennsylvania Rural Water Association (“PRWA”) under programs of the federal government for the year ended December 31, 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 PRWA it is not intended to and does not present the financial position, changes in net assets, or cash flows of PRWA. The accompanying Schedule of Expenditures of Federal Awards is prepared using the accrual basis of accounting in accordance with generally accepted accounting principles as they apply to not-for-profit organizations, which is more fully described in the notes to PRWA’s basic financial statements. 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. PRWA has elected to not use the 10 percent de minimus indirect cost rate allowed under Uniform Guidance. The Federal CFDA number refers to the designation of the program within the Catalog of Federal Domestic Assistance. The total contract amount reflects expenditures incurred related to the services provided. Expenditures reported represent the federal share of fees received by PRWA as a subrecipient of National Rural Water Association and the Pennsylvania Department of Environmental Protection. De Minimis Rate Used: N Rate Explanation: N/A The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) includes the federal award activity of Pennsylvania Rural Water Association (“PRWA”) under programs of the federal government for the year ended December 31, 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 PRWA it is not intended to and does not present the financial position, changes in net assets, or cash flows of PRWA.

Title: BASIS OF ACCOUNTING Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) includes the federal award activity of Pennsylvania Rural Water Association (“PRWA”) under programs of the federal government for the year ended December 31, 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 PRWA it is not intended to and does not present the financial position, changes in net assets, or cash flows of PRWA. The accompanying Schedule of Expenditures of Federal Awards is prepared using the accrual basis of accounting in accordance with generally accepted accounting principles as they apply to not-for-profit organizations, which is more fully described in the notes to PRWA’s basic financial statements. 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. PRWA has elected to not use the 10 percent de minimus indirect cost rate allowed under Uniform Guidance. The Federal CFDA number refers to the designation of the program within the Catalog of Federal Domestic Assistance. The total contract amount reflects expenditures incurred related to the services provided. Expenditures reported represent the federal share of fees received by PRWA as a subrecipient of National Rural Water Association and the Pennsylvania Department of Environmental Protection. De Minimis Rate Used: N Rate Explanation: N/A The accompanying Schedule of Expenditures of Federal Awards is prepared using the accrual basis of accounting in accordance with generally accepted accounting principles as they apply to not-for-profit organizations, which is more fully described in the notes to PRWA’s basic financial statements. 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. PRWA has elected to not use the 10 percent de minimus indirect cost rate allowed under Uniform Guidance. The Federal CFDA number refers to the designation of the program within the Catalog of Federal Domestic Assistance. The total contract amount reflects expenditures incurred related to the services provided. Expenditures reported represent the federal share of fees received by PRWA as a subrecipient of National Rural Water Association and the Pennsylvania Department of Environmental Protection.