Audit 366209

Title: Note 1: Basis of Presentation Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. 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. Negative amounts shown on the Schedule, if any, represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: Oklahoma Electric Cooperative has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. The Cooperative has used the indirect cost rate for employee benefits and equipment approved by the Federal Emergency Management Agency. The accompanying schedule of expenditures of federal awards (Schedule) includes the federal award activity of the Cooperative 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 the Cooperative it is not intended to and does not present the financial position, results of operations, changes in patronage capital and other equities, or cash flows of the Cooperative.

Title: Note 2: Summary of Significant Accounting Policies Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. 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. Negative amounts shown on the Schedule, if any, represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: Oklahoma Electric Cooperative has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. The Cooperative has used the indirect cost rate for employee benefits and equipment approved by the Federal Emergency Management Agency. Expenditures reported on the Schedule are reported on the accrual basis of accounting. 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. Negative amounts shown on the Schedule, if any, represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years.

Title: Note 3: Indirect Cost Rate Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. 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. Negative amounts shown on the Schedule, if any, represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: Oklahoma Electric Cooperative has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. The Cooperative has used the indirect cost rate for employee benefits and equipment approved by the Federal Emergency Management Agency. The Cooperative has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The Cooperative has used the indirect cost rate for employee benefits and equipment approved by the Federal Emergency Management Agency.

Title: Note 4: Note 4. Expenditures Incurred Prior to 2024 Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. 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. Negative amounts shown on the Schedule, if any, represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: Oklahoma Electric Cooperative has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. The Cooperative has used the indirect cost rate for employee benefits and equipment approved by the Federal Emergency Management Agency. Expenditures of $764,569 were incurred by the Cooperative prior to the year ended December 31, 2024 and are included in the Schedule as of and for the year ended December 31, 2024.