Title: 1-Reporting Entity
Accounting Policies: Scope of Presentation
The accompanying Schedule of Expenditures of Federal Awards (“Schedule”) includes the federal grant
activity of the City of Encinitas 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 City of Encinitas, it is not intended to and does not present the financial
position, changes in net position or cash flows of the City of Encinitas.
Basis of Accounting
Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures
are recognized following the cost principles contained in Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Fede
De Minimis Rate Used: N
Rate Explanation: The City did not elect to use the 10-percent de minimis rate as allowed under the Uniform Guidance.
The City of Encinitas (the City) was incorporated on October 1, 1986, pursuant to an election approving the
San Dieguito Reorganization Plan, which consisted primarily of the detachment of territory from the Cardiff
area and the annexation of the same territory to the City of Solana Beach.
The reporting entity of the City includes the accounts of the City, as the primary government, and the
following blended component units: the Encinitas Housing Authority (the EHA), the Encinitas Public
Financing Authority (the EPFA), and the San Dieguito Water District (SDWD).
The EHA was formed on January 26, 1994, under the laws of the State of California to provide
housing assistance to citizens of the City.
The EPFA was formed on November 6, 1991, by the City and SDWD as a Joint Powers Authority
under the laws of the State of California to purchase, finance, and lease certain real property to the
members. The member agencies are the City and the SDWD.
SDWD was formed in 1922 under the laws of the State of California to supply water services to the
central western portion of San Diego County. Certain management, maintenance, and operating
functions are the responsibility of the City, which bills periodically for these services.
The criteria used in determining the scope of the reporting entity are based on the provisions of
Governmental Accounting Standards Board (GASB) Statement No 14, The Financial Reporting Entity, as
amended by GASB Statement No. 61, The Financial Reporting Entity - Omnibus –An Amendment of GASB
Statements No. 14 and No. 34. The City is the primary governmental unit. Component units are financially
accountable to the City. Financial accountability exists if the primary government appoints a voting majority
of the entity's governing body and (1) it is able to impose its will on that organization or (2) there is potential
for the organization to provide financial benefit or impose financial burdens on the primary government. The
component units have been accounted for as "blended" component units of the City. Despite being legally
separate, these entities are so intertwined with the City that they are, in substance, part of the City's
operations. Accordingly, the balances and transactions of these component units are reported within the
funds of the City. SDWD is reported as an enterprise fund of the City.
The following specific criteria were used in determining the status of these component units:
Members of the City Council also act as the governing body of the EHA, the EPFA, and SDWD.
The City, the EHA, the EPFA, and SDWD are financially interdependent.
The EHA, the EPFA, and SDWD are managed, at least in part, by employees of the City, who
provide various support functions including financial reporting and investment decisions.
Separate financial statements for SDWD are available at the City's administrative office. Separate financial
statements are not required or prepared for the EHA and the EPFA.
Title: 2-Summary of Significant Accounting Policies
Accounting Policies: Scope of Presentation
The accompanying Schedule of Expenditures of Federal Awards (“Schedule”) includes the federal grant
activity of the City of Encinitas 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 City of Encinitas, it is not intended to and does not present the financial
position, changes in net position or cash flows of the City of Encinitas.
Basis of Accounting
Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures
are recognized following the cost principles contained in Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Fede
De Minimis Rate Used: N
Rate Explanation: The City did not elect to use the 10-percent de minimis rate as allowed under the Uniform Guidance.
Scope of Presentation
The accompanying Schedule of Expenditures of Federal Awards (“Schedule”) includes the federal grant
activity of the City of Encinitas 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 City of Encinitas, it is not intended to and does not present the financial
position, changes in net position or cash flows of the City of Encinitas.
Basis of Accounting
Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures
are recognized following the cost principles contained in Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards wherein certain types of expenditures are not
allowable or are limited as to reimbursement.
Title: 3-Indirect Costs
Accounting Policies: Scope of Presentation
The accompanying Schedule of Expenditures of Federal Awards (“Schedule”) includes the federal grant
activity of the City of Encinitas 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 City of Encinitas, it is not intended to and does not present the financial
position, changes in net position or cash flows of the City of Encinitas.
Basis of Accounting
Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures
are recognized following the cost principles contained in Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Fede
De Minimis Rate Used: N
Rate Explanation: The City did not elect to use the 10-percent de minimis rate as allowed under the Uniform Guidance.
The City did not elect to use the 10-percent de minimis rate as allowed under the Uniform Guidance.
Title: 4-Subrecipient Expenditures
Accounting Policies: Scope of Presentation
The accompanying Schedule of Expenditures of Federal Awards (“Schedule”) includes the federal grant
activity of the City of Encinitas 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 City of Encinitas, it is not intended to and does not present the financial
position, changes in net position or cash flows of the City of Encinitas.
Basis of Accounting
Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures
are recognized following the cost principles contained in Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Fede
De Minimis Rate Used: N
Rate Explanation: The City did not elect to use the 10-percent de minimis rate as allowed under the Uniform Guidance.
Payments to subrecipients totaled $66,169 for the Community Development Block Grant (14.218) for the
fiscal year ended June 30, 2024 were the following:
Meals on Wheels $ 7,588
CRC Homeless Programs 22,128
Fair Housing Services 19,169
Interfaith Community Services 17,284
$ 66,169