Notes to SEFA
Accounting Policies: NOTE 1 GENERAL The accompanying Schedule of Expenditures of Federal Awards presents the activity of all federal award programs of East Rio Hondo Water Supply Corporation, for the year ended December 31, 2022. The information in this schedule is presented in accordance with the requirements of the Uniform Guidance, and Audits of State, Local Governments, and NonProfit Organizations. In accordance with Governmental Accounting Standards Board requirements, the Corporation has reviewed other entities and activities for possible inclusion in the reporting entity and determined that there are none; however, federal financial assistance passed through other governmental agencies is included on the schedule. NOTE 2 MEASUREMENT FOCUS AND BASIS OF ACCOUNTING The modified accrual basis of accounting is used for nonprofit organizations. This basis of accounting recognizes revenues in the accounting period in which they become susceptible to accrual, i.e., both measurable and available, and expenditures in the accounting period in which the fund liability is incurred, if measurable, except for certain compensated absences and claims and judgments, which are recognized when the obligations are expected to be liquidated with expendable available financial resources. NOTE 3 SUBRECIPIENTS During the year ended December 31, 2022, the Corporation had no subrecipients. NOTE 4 FEDERAL LOANS AND LOAN GUARANTEES During the year ended December 31, 2022, the Corporation had no outstanding federal loans payable or loan guarantees. NOTE 5 FEDERALLY FUNDED INSURANCE During the year ended December 31, 2022, the Corporation had no federally funded insurance. NOTE 6 NONCASH AWARDS During the year ended December 31, 2022, the Corporation did not receive any noncash federal awards. NOTE 7 INDIRECT COST RATE The Corporation does not utilize the de minimus 10% indirect cost rate. Indirect costs, where applicable, are negotiated with the agency providing the grant award to the Corporation.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.