The amounts reported in the accompanying Schedule were obtained from the Utilities’ general ledger. Because the Schedule presents only a selected portion of the operations, it is not intended to and does not present the financial position, changes in net position and cash flows of the Utilities. For purposes of the schedule, federal awards include all grants, contracts, and similar agreements entered into directly with the federal government and other pass through entities. Payments received for goods or services provided as a vendor do not constitute federal awards for purposes of the Schedule. The Utilities has obtained Assistance Listing Numbers (ALN) to ensure that all programs have been identified in the Schedule. ALNs have been appropriately listed by applicable programs. Federal programs with different ALNs that are closely related because they share common compliance requirements are defined as a cluster by the Uniform Guidance. One cluster was identified in the Schedule: Drinking Water State Revolving Fund - This cluster includes providing low interest loans to eligible recipients for drinking water infrastructure projects.
The Schedule was prepared on the accrual basis of accounting and 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 Administrative Requirements). Some amounts presented in this schedule may differ from the amounts presented in, or used in preparation of, the financial statements.
The amounts pass-through reflected in the financial reports submitted to the awarding federal and/or agency and the schedule may differ. Some of the factors that may account for any difference include the following: - The Utilities’ fiscal year end may differ from the program’s year end. - Accruals recognized in the Schedule, because of year end procedures, may not be reported in the program financial reports until the next program reporting period. - Fixed asset purchases and the resultant depreciation charges are recognized as property and equipment, net in the Utilities’ financial statements and as expenditures in the program financial reports.
The Utilities’ reporting entity is fully described in Note 1 to the financial statements.
The Utilities has elected not to use the 10 percent de minimis indirect cost rate allowed under Uniform Guidance.
There were no awards passed through to subrecipients.
The Utilities incurred $5,128,859 of ADEM related expenditures in fiscal year 2025. In accordance with Drinking Water State Revolving Funds guidelines, the Utilities recorded the eligible expenditures in its fiscal year 2025 Schedule of Expenditures of Federal Awards when its requisition and payment request was approved by ADEM.
The Utilities’ had an ending loan balance of $42,875,000 as of September 30, 2025 under the Drinking Water State Revolving Fund loan program under ALN 66.468 passed through the Alabama Department of Environmental Management.