Notes to SEFA
The accompanying schedule of expenditures of federal awards (SEFA) presents the activity of all federal financial assistance programs of the Water Replenishment District of Southern California (the District). For purposes of this schedule, financial awards include federal awards 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 portions of program expenditures reimbursable with federal funds are reported in the accompanying schedule. Program expenditures in excess of the maximum reimbursement authorized, if any, or the portion of the program expenditures that were funded with other state, local or other non-federal funds are excluded from the accompanying schedule. The information in the SEFA 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 SEFA 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 assets, or cash flows of the District.
The accompanying SEFA is presented using the accrual basis of accounting, which is described in Note 2 of the District’s basic financial statements. 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 District has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
Grant expenditure reports for the year ended June 30, 2025, which have been submitted to grantor agencies, will, in some cases, differ from the amounts disclosed herein. The reports prepared for grantor agencies are typically prepared at a later date and often reflect refined estimates of the year-end accruals.
Amounts reported in the accompanying SEFA are in agreement with the financial reports submitted by the District to the funding agencies for the applicable reporting period. Differences between the SEFA and the amounts presented in the District’s Annual Comprehensive Financial Report exist, due to timing differences related to the recognition of revenues and expenditures.