Notes to SEFA
The accompanying Schedule of Expenditures of Federal Awards (Schedule) presents the activity of all federal award programs of the Metropolitan Water District of Southern California (Metropolitan). 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). Metropolitan’s reporting entity is defined in Note 1 in the notes to Metropolitan’s basic financial statements.
Expenditures reported in the accompanying Schedule are presented using 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. Pass-through entity identifying numbers are presented where applicable. Metropolitan did not elect to use the 10% de minimis cost rate as covered in 2 CFR Section 200.414 Indirect (Facilities & Administration) costs.
Expenditures of federal awards are reported in Metropolitan’s basic financial statements as expenditures in the business-type activities. Federal award expenditures agree or can be reconciled with the amounts reported in Metropolitan’s basic financial statements.
Federal awards may be granted directly to Metropolitan by a federal granting agency or may be granted to other government agencies which pass-through federal awards to Metropolitan. The Schedule includes both of these types of federal award programs when related expenditures are incurred.
Metropolitan incurred eligible pre-award costs associated with the USBR Water Recycling and Desalination Construction Programs grant during fiscal years 2020 through 2025. A total of $14,987,808 was claimed as allowable pre-award expenditures in accordance with the grant agreement provisions and are included in the total expenditures reported on the SEFA for fiscal year 2024-25. "See the Notes to the SEFA for table".
Metropolitan incurred eligible expenditures under the Federal Emergency Management Agency (FEMA) Disaster Grants – Public Assistance program during fiscal year 2022–23. In fiscal year 2024–25, the California Governor’s Office of Emergency Services (CalOES) approved Metropolitan’s Project Worksheet Nos. 477 and 964 under this program. The total expenditures of $395,810 reported on the SEFA represent the eligible costs incurred and subsequently approved under these two project worksheets. "See the Notes to the SEFA for table"