Audit 50419

Title: Note 3: Expenditures Incurred Prior to 2022 Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Pioneer Electric Cooperative, Inc. (the Cooperative) under programs of the federal government for the year ended December 31, 2022. The information in the Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations, Party 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 Cooperative, it is not intended to and does not present the financial position, changes in patronage capital, or cash flows of the Cooperative. Expenditures reported on the Schedule are reported on the accrual basis of accounting. 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. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Expenditures of $154,486 were incurred by the Cooperative prior to the year ended December 31, 2022 but are included in the Schedule for the year ended December 31, 2022.