Notes to SEFA
Established on January 8, 1952, the West Valley Water District (the “District”) is located in Southwestern San Bernardino County (the “County”) with a small area of Northwestern Riverside County. The District’s service area is approximately 32 square miles. The District uses 376 miles of water mains to provide water to approximately 21,000 customers. The District is governed by a five-member Board of Directors who serve overlapping four-year terms. The West End Water Development, Treatment and Public Affairs Joint Powers Authority (the “Authority”) was formed on April 7, 1989, pursuant to the provisions of Article I, Chapter S, Division 7, Title 1 of the California Government Code. The Authority is deemed to be a component unit of the District, District of Rialto (the “Rialto”) and the Municipal Water Department of the District of San Bernardino. The District’s portion of the Authority has been included in these financial statements using the blended method of reporting. The Authority has had no activity in the past 10 years and reports no assets or liabilities.
Basis of Accounting The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) includes the federal award activity of 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 statements of the District. Schedule of Expenditures of Federal Awards The accompanying Schedule presents the activity of all federal financial assistance programs of the District. Federal financial assistance passed through the California State Water Resources Control Board is included in the Schedule. The Schedule was prepared only from the accounts of various grant programs and, therefore, does not present the financial position or results of operations of the District. The 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. Indirect Cost Rate The District has not elected to use the 10-percent de minimis indirect rate as allowed under the Uniform Guidance. Subrecipients During the fiscal year ended June 30, 2025, there were no amounts provided to subrecipients.
On August 30, 2023, the District entered into an agreement with California State Water Resources Control Board for the Romer Water Filtration Facility Expansion Project. The District received $18.5 Million during the fiscal year ended June 30, 2024 and $28.1 Million during the fiscal year ended June 30, 2025. The project was completed by December 31, 2025. Payments will begin in fiscal year 2026 and the loan is expected to be repaid by 2055. The amounts reflected in the Schedule of Expenditures of Federal Awards represent expenditures incurred during the year ended June 30, 2025.