Notes to SEFA
The accompanying schedule of expenditures of federal awards (the Schedule) is presented on the accrualbasis of accounting. The information in this Schedule is presented in accordance with the requirementsof Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, CostsPrinciples and Audit Requirements for Federal Awards. (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of JXN Water, it is not intendedto and does not present the financial position, changes in net assets, or cash flows of JXN Water.
Expenditures reported on the Schedules are reported on the accrual basis of accounting. Suchexpenditures are recognized following the cost principles contained in the Uniform Guidance, whereincertain types of expenditures are not allowable or are limited as to reimbursement.
The Organization has not elected to use the 10% de minimis indirect cost rate.
The Schedule of Expenditures of Federal Awards includes expenditures funded through the U.S.Environmental Protection Agency Drinking Water State Revolving Fund Cluster (ALN 66.468). Certainawards under this program were funded through state revolving fund financing arrangements thatincluded principal forgiveness provisions. Principal forgiveness represents the portion of the loan awardthat is not required to be repaid by JXN Water, Inc. and is recognized as federal expenditures inaccordance with Uniform Guidance requirements. During the year ended December 31, 2025,expenditures related to these awards were included in the Schedule of Expenditures of Federal Awards.The outstanding balance of loans subject to continuing compliance requirements was $211,126,356 atDecember 31, 2025