Title: 1 - Reporting Entity
Accounting Policies: Expenditures reported on the Schedule are reported on the full 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.
De Minimis Rate Used: N
Rate Explanation: The Authority has not elected to use the 10-percent de minimis indirect rate as allowed under the Uniform Guidance.
The East County Advanced Water Purification Joint Powers Authority (the “Authority”) was established on
November 1, 2019 pursuant to the Joint Exercise of Powers Act (California Government Code Section 6500 et seq.)
and a Joint Exercise of Powers Agreement (“JPA Agreement”) between three “Member Agencies: Padre Dam
Municipal Water District (“Padre Dam”), the City of El Cajon (“El Cajon”) and the San Diego County Sanitation
District (the “SDCSD”). The Board of Directors of the Authority (“Board”) is composed of Directors representing
each Member Agency. Helix Water District (Helix) is a non-voting, ex-officio member of the Authority’s Board.
The purpose of the Authority is to plan for, design, construct, own, lease, operate, maintain, repair, and replace a
reclamation facility for the purpose of the advanced treatment of wastewater and production of advanced purified
water. The Authority is authorized to exercise the powers common to the Member Agencies, powers otherwise
permitted under the Joint Exercise of Powers Act, and powers necessary to accomplish the purposes of the JPA
Agreement, subject to such restrictions as are applicable to the City of El Cajon, a charter city organized and operating
under Article XI of the California Constitution. The Authority is further authorized to do all acts necessary, convenient
and appropriate for the exercise of its powers as further described in the JPA Agreement.
Ultimately the Authority will serve as a wastewater treatment facility for its three member agencies. The Authority will
also produce and sell product water to Helix Water District (Helix) and product and Title 22 water to Padre Dam.
The criteria used in determining the scope of the reporting entity is based on the provisions of GASB Code Sections
2100 “Defining the Financial Reporting Entity.” The Authority is the primary government unit. Component units are
those entities which are financially accountable to the primary government, either because the Authority appoints a
voting majority of the component units board, or because the component unit will provide a financial benefit or impose
a financial burden on the Authority. The Authority has no component units.
Title: 2 - Basis of Presentation
Accounting Policies: Expenditures reported on the Schedule are reported on the full 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.
De Minimis Rate Used: N
Rate Explanation: The Authority has not elected to use the 10-percent de minimis indirect rate as allowed under the Uniform Guidance.
The accompanying Schedule of Expenditures of Federal Awards (“Schedule”) includes the federal award activity of
the Authority under programs of the federal government for the year ended June 30, 2023. 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 the Authority, it is not intended
to and does not present the financial statements of the Authority.
Title: 3 - Summary of Significant Accounting Policies
Accounting Policies: Expenditures reported on the Schedule are reported on the full 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.
De Minimis Rate Used: N
Rate Explanation: The Authority has not elected to use the 10-percent de minimis indirect rate as allowed under the Uniform Guidance.
Expenditures reported on the Schedule are reported on the full 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.
Title: 4 - Indirect Cost Rate
Accounting Policies: Expenditures reported on the Schedule are reported on the full 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.
De Minimis Rate Used: N
Rate Explanation: The Authority has not elected to use the 10-percent de minimis indirect rate as allowed under the Uniform Guidance.
The Authority has not elected to use the 10-percent de minimis indirect rate as allowed under the Uniform Guidance.
Title: 5 - Subrecipients
Accounting Policies: Expenditures reported on the Schedule are reported on the full 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.
De Minimis Rate Used: N
Rate Explanation: The Authority has not elected to use the 10-percent de minimis indirect rate as allowed under the Uniform Guidance.
The Authority did not provide any amounts to subrecipients during the fiscal year ended June 30, 2023.
Title: 6 - Contingencies
Accounting Policies: Expenditures reported on the Schedule are reported on the full 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.
De Minimis Rate Used: N
Rate Explanation: The Authority has not elected to use the 10-percent de minimis indirect rate as allowed under the Uniform Guidance.
Under the terms of federal and state grants, additional audits may be requested by the grantor agencies and certain
costs may be questioned as not being appropriate expenditures under the terms of the grants. Such audits could lead to
a request for reimbursement to the grantor agencies.
Title: 7 - Related Party
Accounting Policies: Expenditures reported on the Schedule are reported on the full 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.
De Minimis Rate Used: N
Rate Explanation: The Authority has not elected to use the 10-percent de minimis indirect rate as allowed under the Uniform Guidance.
All federal funds received by the Authority are passed through from Padre Dam (Note 1).