Notes to SEFA
The schedule of expenditures of federal awards (the Schedule) includes federal award activity of Old Union Water System, 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 Requirements, Cost Principles and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of Old Union Water System, Inc., it is not intended to and does not present the financial position, change in net assets or cash flows of Old Union Water System, Inc.
Expenditures reported on the Schedule are reported on the cash basis of accounting. Under this basis, expenditures are recognized when paid rather than when the underlying obligation is incurred. 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 significant accounting policies used in preparing the Schedule are described in these notes, and Old Union Water System, Inc is able to reconcile amounts presented in the Schedule to related amounts in its accounting records and basic financial statements.
The System has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance