Notes to SEFA
The accompanying schedule of expenditures of federal awards includes the federal award activity of Buckhorn Rural Water District No. 2 under programs of the federal government for the year ended December 31, 2025. The information is 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 (the Uniform Guidance). Because the schedule presents only a selected portion of the operations of Buckhorn Rural Water District No. 2, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Buckhorn Rural Water District No. 2.
Expenditures are reported on the modified cash basis of accounting, which is consistent with the basis of accounting used in the preparation of the financial statements. 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. In accordance with 2 CFR §200.502, federal awards are reported as expenditures on the Schedule when the activity related to the federal awards occurs. Accordingly, expenditures incurred in 2025 but reimbursed by the pass-through entity in 2026 are reported on the 2025 Schedule. The related receivable is reported in the accompanying financial statements. Buckhorn Rural Water District No. 2 has elected not to use the de minimis indirect cost rate as allowed under the Uniform Guidance.
Buckhorn Rural Water District No. 2 did not provide any federal awards to subrecipients during the year ended December 31, 2025.