The Great Northwest Wholesale Water Commission (the Commission) is the recipient of one federal award, a direct award from the United States Department of Agriculture, Rural Development (Rural Development) under the Water and Waste Disposal Systems for Rural Communities program (Assistance Listing 10.760), consisting of a commitment for permanent loan financing of $39,918,000 and a conditional letter of commitment for grants of $7,027,210. Construction has been funded on an interim basis by an advance from the Missouri Public Utilities Commission (the Authority), which is secured by Rural Development’s commitment to provide the permanent financing. The Authority is a lender, not a pass-through entity, and the award is reported as a direct federal award.
The accompanying Schedule of Expenditures of Federal Awards (Schedule) includes the federal award activity of the Great Northwest Wholesale Water Commission and is presented on the accrual basis of accounting. The information presented in this schedule is in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Therefore, some amounts presented in the Schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. Expenditures reported on the Schedule consist of project costs incurred during the year that were paid from Rural Development grant funds or from the interim financing that will be repaid from the proceeds of the Rural Development loan, and are reported when the related liability is incurred. Project costs paid from the Commission’s own funds are reported when they are submitted to Rural Development for reimbursement. Accordingly, expenditures reported on the Schedule differ from the grant revenue recognized in the basic financial statements.
Local cost sharing, as defined by Title 2 CFR Part 200, Subpart D, Section 200.306, is required by certain federal grants. The amount of cost sharing varies with each program. Only the federal share of expenditures is presented in the Schedule of Expenditures of Federal Awards.
Grantor agencies reserve the right to conduct additional audits of the Commission’s grant program for economy and efficiency and program results that may result in disallowed costs to the Commission. However, management does not believe such audits would result in any disallowed costs that would be material to the Commission’s financial position at December 31, 2025.
The Commission does not allocate indirect costs and has elected not to use the de minimis indirect cost rate allowed under the Uniform Guidance (10% of modified total direct costs for awards issued before October 1, 2024, and 15% for awards issued on or after October 1, 2024).
The permanent Rural Development loan had not closed as of December 31, 2025; accordingly, the Commission had no federal loan balance outstanding at year end. Project costs to date have been funded in part by a $39,918,000 interim financing advance from the Missouri Public Utilities Commission, which is not a federal award and will be repaid from the proceeds of the Rural Development loan upon closing.