Audit 55787

Title: Loan/loan guarantee outstanding balances Accounting Policies: Note 1 - Basis of PresentationThe accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Vergennes-Panton Water District under programs of the federal government for the year ended December 31, 2022. The information in 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 (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of Vergennes-Panton Water District, it is not intended to and does not present the statement of revenues, expenditures, and changes in fund balance of Vergennes-Panton Water District.Note 2 - Summary of Certain Significant Accounting PoliciesExpenditures 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.Note 3 - SubrecipientsOf the federal expenditures presented in the Schedule, the Water District did not provide federal awards to subrecipients.Note 4 Scope of AuditThe Water District is an independent municipal corporation. All federal grant operations of the Water District are included in the scope of the single audit.Note 5 Non-monetary assistanceNonmonetary assistance is reported in the schedule at the fair market value of the commodities received and disbursed. For the year ended December 31, 2022, the Water District did not receive non-monetary assistance.Note 6 Indirect Cost RateThe Water District has elected not to use the 10% de minimus indirect cost rate as allowed under the Uniform Guidance.Indirect costs may be included in the reported expenditures, to the extent that they are included in the federal financial reports used as the source for the data presented. The Water Districts policy is not to charge federal award programs with indirect costs. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. COMMUNITY FACILITIES LOANS AND GRANTS (10.766) - Balances outstanding at the end of the audit period were 2614831.