Title: Basis of Presentation
Accounting Policies: 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. The Board has elected not to use the 10% de minimus cost rate allowed under the Uniform Guidance.
De Minimis Rate Used: N
Rate Explanation: The Board has elected not to use the 10% de minimus cost rate allowed under the Uniform Guidance.
The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal award activity of the Sewerage and Water Board of New Orleans (the “Board”) under programs of the federal government for the year ended December 31, 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 Board, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Board.
Title: Relationship to Basic Financial Statements
Accounting Policies: 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. The Board has elected not to use the 10% de minimus cost rate allowed under the Uniform Guidance.
De Minimis Rate Used: N
Rate Explanation: The Board has elected not to use the 10% de minimus cost rate allowed under the Uniform Guidance.
Federal awards are included in capital contributions on the statement of revenues, expenses, and changes in net position.
Title: Bonds Payables from Federal Programs
Accounting Policies: 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. The Board has elected not to use the 10% de minimus cost rate allowed under the Uniform Guidance.
De Minimis Rate Used: N
Rate Explanation: The Board has elected not to use the 10% de minimus cost rate allowed under the Uniform Guidance.
The Board has entered into several loan agreements with the Louisiana Department of Environmental Quality (LDEQ) whereby the LDEQ has committed to loan the Board certain amounts for each agreement to fund various projects. The loan proceeds are provided to the Board in incremental amounts as project costs are incurred. A portion of the loan proceeds are funded by the federal Clean Water State Revolving Fund (CWSRF) program. The indebtedness to the LDEQ is evidenced through the Sewerage Service Revenue Bonds, Series 2011, Series 2019, Series 2022, and Series 2023. As of December 31, 2023, $17,079,964 is included bonds payable on the financial statements related to these agreements. Total 2023 drawdowns on the loans were $6,273,562. Of this amount, $1,560,042 was funded by the CWSRF program which i the amount included on the Schedule. This is not a federal loan or loan guarantee program, and as a result, the outstanding liability is not included on the Schedule.
On November 10, 2021, the Board closed on a $275,000,000 revenue debt issue through the Water Infrastructure Financing and Innovation Act (WIFIA) with the U.S. Environment Agency (EPA) to fund over 160 projects to modernize aging and storm damaged sewer pipelines throughout the City of New Orleans as part of a comprehensive Sewer System Evaluation and Rehabilitation Program. The WIFIA debt will be due in semi-annual installments of interest and annual payments of principal, with a final maturity date of 35 years following the substantial completion date of the projects. The total 2023 WIFIA debt proceeds were $0 and the total debt outstanding as of December 31, 2023 which is included on the Schedule and in bonds payable on the financial statements is $1,053,179.