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 District has not elected to use the 10-percent de minimis indirect rate as allowed under the Uniform Guidance.
The Olivenhain Municipal Water District (the “District”) is a governmental corporation governed by an elected fivemember
board of directors. The District was incorporated in 1959 under the provisions of the California Municipal
Water District Act of 1911.
The District is operated as an enterprise fund. The finances of the District are kept on the accrual basis of accounting.
Revenues are recognized when earned and expenses are recognized when incurred. As an enterprise fund, the District
maintains a self-balancing set of accounts established to record the financial position and results that pertain to each
activity. The activities of enterprise funds are similar to regular businesses whereby a governmental agency collects
sufficient revenues through rates and user charges to pay for on-going operating expenses and maintaining
infrastructure in order to sustain operations.
The District’s service area is approximately 48.6 square miles. This service area lies within the northern region of San
Diego County and includes portions of incorporated areas such as Encinitas, Carlsbad, San Diego, Solana Beach, San
Marcos and large portions of unincorporated areas such as 4S Ranch, Rancho Cielo, Rancho Santa Fe, Elfin Forest,
and Santa Fe Valley.
The District is at approximately 95% of its ultimate build-out of approximately 34,400 equivalent dwelling units. For
the fiscal year ended June 30, 2024, 70.5% of water delivered was for domestic use, 28.5% for commercial and
irrigation use (including construction and recycled water), and 1.0% for agricultural use. The District relies on the San
Diego County Water Authority (SDCWA) as a sole source of untreated water, which is treated at the District’s David
C. McCollom Water Treatment Plant.
The District provides sewer collection and treatment services to a portion of the District’s service area and sells
recycled water to golf courses and other customers for irrigation. The District’s 4S Ranch Water Reclamation Facility
(“WRF”) collects and treats sewage from two specific areas of the District, Rancho Cielo and 4S Ranch. The 4S WRF
currently produces approximately 1 million gallons per day (“mgd”) of recycled water to help meet demand in the
southeast quadrant of the District’s service area. The District also purchases recycled water from Santa Fe Valley
Community Services District, City of San Diego, Vallecitos Water District, and the San Elijo Joint Powers Authority
to help meet recycled water demand throughout its service area.
During the fiscal year ended June 30, 2024, the District billed 14,322 acre-feet (“AF”) of potable water through
28,757 active potable water meters and 2,192 AF of recycled water through 328 active recycled meters. The District
provided wastewater collection services to 7,340 sewer equivalent dwelling units (“EDU”s) in 4S Ranch, Rancho
Cielo, Santa Luz, and Black Mountain Ranch.
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 District 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 (the “Schedule”) includes the federal award activity
of the District under programs of the federal government for the year ended June 30, 2024. 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 District, it is not intended
to and does not present the financial statements of the District.
Title: 3 SSAP
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 District 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 District has not elected to use the 10-percent de minimis indirect rate as allowed under the Uniform Guidance.
The District 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 District has not elected to use the 10-percent de minimis indirect rate as allowed under the Uniform Guidance.
The District passed $3,324,102 through to sub-recipient members of the North San Diego Water Reuse Coalition
(“Coalition”) during the fiscal year ended June 30, 2024. The Coalition is a group of nine water and wastewater
agencies in San Diego County working together to maximize recycled water use and reduce demand for imported
water. The Title XVI Water Reclamation and Reuse grant was awarded to the coalition to fund its Regional Recycled
Water Program, which is a joint effort between Coalition members to expand recycled water infrastructure to increase
and maximize water reuse in the region. Upon completion of all long-term project elements, the Coalition anticipates
increasing water reuse by 11 billion gallons per year.
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 District has not elected to use the 10-percent de minimis indirect rate as allowed under the Uniform Guidance.
osts 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.