Notes to SEFA
BASIS OF PRESENTATION The accompanying Schedule of Expenditures of Federal Awards (the Schedule) summarizes the federal award activity of the Moulton Niguel Water District (the District) under programs of the federal government for the year ended June 30, 2025. 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 District, it is not intended to and does not present the financial position, changes in net position, or cash flows of the District as of and for the year ended June 30, 2025.
SUMMARY OF SIGNIFICANT 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. Program expenditures in excess of the maximum reimbursement authorized or the program expenditures that were funded with nonfederal funds are excluded from the Schedule. The District has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.
RELATIONSHIPS OF SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS TO THE FINANCIAL STATEMENTS Consistent with management’s policy, federal awards are recorded in various categories. As a result, the amount of total federal awards reported on the Schedule does not agree with intergovernmental revenues on the Statement of Revenues, Expenses and Change in Net Position as presented in the District’s audited financial statements as of and for the year ended June 30, 2025.