Audit 348405

Accounting Policies: The San Gabriel Basin Water Quality Authority (Authority) includes expenditures in its Schedule of Expenditures of Federal Awards (SEFA Schedule) for federal awards received directly by the Authority from a federal agency, U.S. Environmental Protection Agency and federal awards received directly by the Authority from a federal agency, U.S Department of the Interior Bureau of Reclamation. Only the portion of program expenditures reimbursable with such federal funds is reported in the accompanying schedule. Program expenditures in excess of the maximum federal reimbursement authorized or the portion of the program expenditures that was funded with other state, local, or other nonfederal funds are excluded from the accompanying SEFA schedule. The accompanying SEFA Schedule has been presented on the accrual basis of accounting. Expenditures are recorded, accordingly, when incurred rather than when paid. Expenditures reported on the SEFA Schedule are recognized following the cost principlescontained in 2 CFR Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). De Minimis Rate Used: N Rate Explanation: The Authority has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.