The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal award activity of the Central Water Association, Inc. under programs of the federal government for the year ended June 30, 2025. 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 Requirement, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of Central Water Association, Inc., it is not intended to and does not present the financial position, activities, functional expenses, or cash flows of Central Water Association, Inc.
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.
The Association has not elected to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance.
The Association participates in the Capitalization Grants for Drinking Water State Revolving Fund program (Assistance Listing No. 66.468) administered by the Mississippi State Department of Health. These loans are considered federal awards and are included in the SEFA. Expenditures reported on the SEFA are recognized on the accrual basis of accounting. Accordingly, expenditures are recorded when incurred, which at times may differ from the timing of related loan proceeds. During the year ended June 30, 2025, the Association recognized federal expenditures of $732,990 under this program. Of the total expenditures, $307,704 were financed with loan proceeds received subsequent to the year ended June 30, 2025, while $341,730 of loan proceeds received during the year relate to expenditures incurred in the year ended June 30, 2024. In addition, the Association has outstanding loan balances under this program that are subject to continuing compliance requirements. As of June 30, 2025, the outstanding balance of these loans was $2,326,808.
Total federal grant revenue per Statements of Activities $ 896,645 Expenditures related to Capitalization Grants for Drinking Water State Revolving Funds 732,990 Total Expenditures of Federal Awards $ 1,629,635