Title: Basis of Presentation
Accounting Policies: Expenditures reported on the Schedule are reported on the 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. The Board has elected not to use the 10% or 15% de minimus cost rates allowed under the Uniform Guidance.
De Minimis Rate Used: N
Rate Explanation: The Board has elected not to use the 10% or 15% de minimus cost rates allowed under the Uniform Guidance.
The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal award activity of the Sewerage and Water Board of New Orleans (the “Board”) under programs of the federal government for the year ended December 31, 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 Board, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Board.
Title: Relationship to Basic Financial Statements
Accounting Policies: Expenditures reported on the Schedule are reported on the 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. The Board has elected not to use the 10% or 15% de minimus cost rates allowed under the Uniform Guidance.
De Minimis Rate Used: N
Rate Explanation: The Board has elected not to use the 10% or 15% de minimus cost rates allowed under the Uniform Guidance.
Federal awards are included in capital contributions on the statement of revenues, expenses, and changes in net position or debt balances as described in Note 4.
Title: Debt from Federal Programs
Accounting Policies: Expenditures reported on the Schedule are reported on the 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. The Board has elected not to use the 10% or 15% de minimus cost rates allowed under the Uniform Guidance.
De Minimis Rate Used: N
Rate Explanation: The Board has elected not to use the 10% or 15% de minimus cost rates allowed under the Uniform Guidance.
The Board has entered into several loan agreements with the Louisiana Department of Environmental Quality (LDEQ) whereby the LDEQ has committed to loan the Board certain amounts for each agreement to fund various projects. The loan proceeds are provided to the Board in incremental amounts as project costs are incurred. A portion of the loan proceeds are funded by the federal Clean Water State Revolving Fund (CWSRF) program. The indebtedness to the LDEQ is evidenced through the Sewerage Service Revenue Bonds, Series 2011, Series 2019, Series 2022, Series 2023, Series 2024A and Series 2024B. As of December 31, 2024, $28,406,117 is included bonds payable on the financial statements related to these agreements. Total 2024 drawdowns on the loans were $12,408,158. Of this amount, $6,592,742 was funded by the CWSRF program which is the amount included on the Schedule. This is not a federal loan or loan guarantee program, and as a result, the outstanding liability is not included on the Schedule.
On November 10, 2021, the Board closed on a $275,000,000 revenue debt issue through the Water Infrastructure Financing and Innovation Act (WIFIA) with the U.S. Environment Agency (EPA) to fund over 160 projects to modernize aging and storm damaged sewer pipelines throughout the City of New Orleans as part of a comprehensive Sewer System Evaluation and Rehabilitation Program. The WIFIA debt will be due in semi-annual installments of interest and annual payments of principal, with a final maturity date of 35 years following the substantial completion date of the projects. The total 2024 WIFIA debt proceeds were $71,346,804 and the total debt outstanding as of December 31, 2024, is $72,399,982.
In 2024, the Board entered into an agreement with the Louisiana Department of Health (LDH) whereby the LDH has committed to loan the Board $86,000,000 to fund the water system. The loan is being advanced in incremental amounts as project costs are incurred. The indebtedness to the LDH is evidenced through the Taxable Water Revenue Bonds, Series 2024A. Total 2024 drawdowns on the loan was $268,075, which is the amount included on the Schedule. This is not a federal loan or loan guarantee program, and as a result, the outstanding liability is not included on the Schedule.