Notes to SEFA
The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) includes the federal award activity of North Benton County Water Association, Inc. (the “Association”) under the Coronavirus State and Local Fiscal Recovery Funds program of the federal government for the year ended December 31, 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 Association, it is not intended to, and does not, present the financial position, results of operations, or cash flows of the Association.
The accompanying Schedule of Expenditures of Federal Awards is prepared on the cash basis of accounting, which is a basis of accounting other than accounting principles generally accepted in the United States of America. Expenditures reported on the Schedule represent cash disbursements charged to the federal program during the year and 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. Although the Organization’s modified cash basis financial statements include depreciation on long-lived assets, no depreciation expense was charged to the federal program or included in the Schedule.
The Association has elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.
The Association has outstanding Rural Utilities Service loans payable which were obtained in prior years, and management has determined that the outstanding loans do not impose continuing federal compliance requirements other than repayment. Accordingly, the loan balances are not reported as federal awards under 2 CFR 200.502 and is not included in the federal program subject to this program-specific audit. The outstanding balance of such loans at December 31, 2025 was $142,592.
The Association has entered into construction contracts related to projects funded in whole or in part by the federal program presented in the accompanying Schedule. As of December 31, 2025, the remaining contractual commitment under these agreements was approximately $915,218. These amounts are not included as expenditures in the accompanying Schedule because the related work had not been completed and paid as of year-end. Future payments under these contracts are expected to be funded from federal award funds, subject to the terms and conditions of the award.