The financial reporting entity, as defined by the Governmental Accounting Standards Board (“GASB”) Codification, consists of the primary government, which is the Helix Water District (the “District”), organizations for which the primary government is financially accountable. The District was organized in 1913 and operates under the provisions of the Irrigation District Law, per Division 11 of the California State Water Code. The District supplies water to the cities of La Mesa, El Cajon, Lemon Grove and surrounding unincorporated areas. It is governed by a board consisting of five directors, each of whom is elected by divisions of the District for a four-year term.
Basis of Presentation The accompanying Schedule of Expenditures of Federal Awards (the "Schedule") includes the federal award activity of the District under program 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 (“CFR”) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (the “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 or the changes in the financial position of the District. Schedule of Expenditures of Federal Awards 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. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Indirect Cost Rate The District has not elected to use the de minimis indirect cost rate as allowed under the Uniform Guidance (10 percent of modified total direct costs for awards issued prior to October 1, 2024, and 15 percent for awards issued or amended on or after October 1, 2024).
The District did not provide any amounts to subrecipients during the fiscal year ended June 30, 2025.
On September 9, 2022, the District executed a Water Infrastructure Finance and Innovation Act (WIFIA) loan agreement with the U.S. Environmental Protection Agency (EPA) and the Public Property Financing Corporation of California for the Drinking Water Reliability Project which is scheduled to be completed by 2027. The funds will support the District in upgrading pump stations, pipelines, conveyance infrastructure, and constructing a lake aeration system to enable the district to receive purified recycled water from the East County Advanced Water Purification Program. This project aims to create a sustainable, drought-proof local supply providing up to 30% of the region’s drinking water. The amount reflected in the Schedule of Expenditures of Federal Awards represents expenditures incurred during the year ended June 30, 2025. The following table contains information about the loan. Assistance Outstanding Number Interest Term-Annual Loan Balance at Loan Grant ID Listing Rate Maturities Through June 30 2025* WIFIA Loan - Water N21119CA 66.958 3.47% April 1, 2057 $5,492,500 * The loans outstanding include expenditures reported in prior periods. Funds were not drawn on until the current year; therefore, there was no loan balances at the beginning of the year. The District is authorized to draw up to $18,972,800 under the WIFIA loan agreement through April 2027, the estimated timing of project completion. The District has drawn a total of $5,492,500 as of June 30, 2025.