Title: Note 1: Basis of Presentation
Accounting Policies: The Schedule has been prepared using the accrual basis of accounting which is consistent with the basis of accounting used to prepare the Authority’s financial statements. Under the accrual basis of accounting, expenditures are recognized in the Schedule at the time that the Federal government’s share of allowable costs are incurred in accordance with terms and conditions of each respective Federal award program. 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 Authority’s share of allowable costs (matching costs) is not included in the accompanying Schedule.
De Minimis Rate Used: N
Rate Explanation: NA
The schedule of expenditures of federal awards (the Schedule) includes the activity of all federal award programs of the District of Columbia Water and Sewer Authority (the Authority). The information in the Schedule is presented in accordance with requirements of Title 2 U.S. Code of Federal Regulations (CFR) 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 position, changes in net position or cash flows of the Authority.
Title: Note 2: Summary of Significant Accounting Policies
Accounting Policies: The Schedule has been prepared using the accrual basis of accounting which is consistent with the basis of accounting used to prepare the Authority’s financial statements. Under the accrual basis of accounting, expenditures are recognized in the Schedule at the time that the Federal government’s share of allowable costs are incurred in accordance with terms and conditions of each respective Federal award program. 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 Authority’s share of allowable costs (matching costs) is not included in the accompanying Schedule.
De Minimis Rate Used: N
Rate Explanation: NA
The Schedule has been prepared using the accrual basis of accounting which is consistent with the basis of accounting used to prepare the Authority’s financial statements. Under the accrual basis of accounting, expenditures are recognized in the Schedule at the time that the Federal government’s share of allowable costs are incurred in accordance with terms and conditions of each respective Federal award program. 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 Authority’s share of allowable costs (matching costs) is not included in the accompanying Schedule.
Title: Note 3: Reconciliation to Basic Financial Statements
Accounting Policies: The Schedule has been prepared using the accrual basis of accounting which is consistent with the basis of accounting used to prepare the Authority’s financial statements. Under the accrual basis of accounting, expenditures are recognized in the Schedule at the time that the Federal government’s share of allowable costs are incurred in accordance with terms and conditions of each respective Federal award program. 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 Authority’s share of allowable costs (matching costs) is not included in the accompanying Schedule.
De Minimis Rate Used: N
Rate Explanation: NA
The following is a reconciliation of the total expenditures of federal awards reported in the Schedule to capital contributions reported on page 19 of the basic financial statements (in thousands).
Description: Amount
Total capital contributions per financial statements $ 35,831
Less: contributions from District government (1,677)
Add: EPA WIFIA Loan Program 26,013
Total Federal Expenditure per Schedule $ 60,167
Title: Note 4: Indirect Cost Rate
Accounting Policies: The Schedule has been prepared using the accrual basis of accounting which is consistent with the basis of accounting used to prepare the Authority’s financial statements. Under the accrual basis of accounting, expenditures are recognized in the Schedule at the time that the Federal government’s share of allowable costs are incurred in accordance with terms and conditions of each respective Federal award program. 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 Authority’s share of allowable costs (matching costs) is not included in the accompanying Schedule.
De Minimis Rate Used: N
Rate Explanation: NA
The Authority has not elected to use a 10% de minimis indirect cost rate provided for in the Uniform Guidance.
Title: Note 5: Federal Loan Program
Accounting Policies: The Schedule has been prepared using the accrual basis of accounting which is consistent with the basis of accounting used to prepare the Authority’s financial statements. Under the accrual basis of accounting, expenditures are recognized in the Schedule at the time that the Federal government’s share of allowable costs are incurred in accordance with terms and conditions of each respective Federal award program. 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 Authority’s share of allowable costs (matching costs) is not included in the accompanying Schedule.
De Minimis Rate Used: N
Rate Explanation: NA
On March 12, 2021, DC Water entered into a WIFIA Loan Agreement with the United States Environmental Protection Agency for an amount up to $156,367. The WIFIA Loan is expected to provide partial funding for infrastructure repair, rehabilitation, and replacement projects within the District of Columbia. Payment of the WIFIA Loan will be secured by a senior lien pledge of net revenues, with final maturity on October 1, 2060. On September 17, 2021 DC Water and EPA re-executed the WIFIA Loan Agreement to lower the fixed interest rate to 1.87%, with all other terms remaining unchanged. DC Water has submitted requests for loan disbursements and there is an outstanding balance of $78,613 loan principal as of September 30, 2024.