Audit 375547

The accompanying Schedule of Expenditures of Federal Awards (the Schedule) is a supplementary schedule to the Union Soil and Water Conservation District's financial statements and is presented for purposes of additional analysis. Because the Schedule presents only a selected portion of the activities of the Union Soil and Water Conservation District, it is not intended to and does not present either the financial position, results of operations, or changes in net assets of the Union Soil and Water Conservation District.

Reporting Entity The reporting entity is fully described in Note 1 to the Union Soil and Water Conservation District's basic financial statements. The Schedule includes all federal programs administered by the Union Soil and Water Conservation District for the year ended June 30, 2025. Basis of Presentation The accompanying schedule of expenditures of federal awards includes the federal award activity of the Union Soil and Water Conservation District under programs of the federal government for the year ended June 30, 2025. 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 Union Soil and Water Conservation District, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Union Soil and Water Conservation District. 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 the Union Soil and Water Conservation District 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 the Union Soil and Water Conservation District 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 modified cash basis of accounting. Revenues and expenses are recorded when they result from cash transaction. 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 June 30, 2025, Union Soil and Water Conservation District had insurance coverage in effect comparable to other entities of similar size and circumstance. Indirect Cost Rate The Union Soil and Water Conservation District has not elected to use the 10 percent de minimis indirect cost rate as allowed under Uniform Guidance.