Audit 352011

Title: Summary of Significant Accounting Policies Applicable to the Schedule of Expenditures of Federal Awards Accounting Policies: A. Scope of Presentation The accompanying schedule presents only the expenditures incurred by the Coachella Valley Water District, California (the District), that are reimbursable under federal programs of federal financial assistance. For the purposes of this schedule, federal awards include both federal financial assistance received directly from a federal agency, as well as federal funds received indirectly by the District from a non-federal agency or other organization. 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 expenses that were funded with state, local or other non-federal funds are excluded from the accompanying schedule. B. Basis of Accounting The expenses included in the accompanying schedule were reported on the accrual basis of accounting. Under the accrual basis of accounting, expenses are incurred when the District becomes obligated for payment as a result of the receipt of the related goods and services. Expenses reported included any property or equipment acquisitions incurred under the federal program. The District has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The District has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. A. Scope of Presentation The accompanying schedule presents only the expenditures incurred by the Coachella Valley Water District, California (the District), that are reimbursable under federal programs of federal financial assistance. For the purposes of this schedule, federal awards include both federal financial assistance received directly from a federal agency, as well as federal funds received indirectly by the District from a non-federal agency or other organization. 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 expenses that were funded with state, local or other non-federal funds are excluded from the accompanying schedule. B. Basis of Accounting The expenses included in the accompanying schedule were reported on the accrual basis of accounting. Under the accrual basis of accounting, expenses are incurred when the District becomes obligated for payment as a result of the receipt of the related goods and services. Expenses reported included any property or equipment acquisitions incurred under the federal program. The District has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.