The accompanying Schedule of Expenditures of Federal Awards (Schedule) presents the activity of all federal award programs of the City of San Diego, California (City). The Schedule excludes the federal award programs of the San Diego Housing Commission (refer to Note 5). Federal awards received directly from federal agencies as well as federal awards passed through other nonfederal agencies, primarily the State of California (State), are included in the Schedule. The City’s reporting entity is defined in Note 1.a. in the notes to the City’s basic financial statements. Because the Schedule presents only a selected portion of the operations of the City, it is not intended to and does not, present the financial position of the City. 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). Therefore, some amounts presented in this Schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements.
Expenditures reported in the accompanying Schedule are presented using the modified accrual basis of accounting for grants accounted for in the governmental fund types and the accrual basis of accounting for grants accounted for in the proprietary fund types, as described in Note 1.c. in the notes to the City’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. Negative amounts shown in the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. The negative amount of $794,132 reported for Assistance Listing Number (ALN) 97.036, Disaster Grants - Public Assistance (Presidentially Declared Disasters), related to net of multiple grants including FEMA-4482-DR-CA/073-66000 and FEMA-4683-DR-CA/073-66000, represents the deobligation of a previously approved amount. The other negative amount reported for Assistance Listing Number (ALN) 97.041, National Dam Safety Program grant number 4600014892, represents an adjustment for a FY24 expense that was determined to be ineligible for reimbursement.
The ALNs included in the accompanying Schedule were determined based on the federal program name, review of grant contract information, and the Office of Management and Budget’s Catalog of Assistance Listings.
The City elected not to use the 10 percent de minims indirect cost rate allowed under the Uniform Guidance, except for the Inflation Reduction Act Urban & Community Forestry Program granted by U.S. Department of Agriculture (ALN 10.727, grant number 24-DG-11052021-228), Economic Development Initiative, Community Project Funding, and Miscellaneous Program granted by U.S. Department of Housing and Urban Development (ALN 14.251, B-23-CP-CA-0197, and B-23-CP-CA-0251), and Homeland Security Grant Program passed through the California Governor’s Office of Emergency Services (ALN 97.067, Homeland Security Grant Program grant numbers 2020-0095/073-66000, 2021-0081/073-66000, and 2022-0043/073-66000).
The San Diego Housing Commission (SDHC) federal expenditures of $413,847,408 are excluded from the City’s Schedule because the SDHC federal expenditures are separately audited by other auditors and reported in a separate Uniform Guidance report.
In accordance with guidance provided by the U.S. Department of Commerce contained in the OMB Compliance Supplement, the City has reported federal award expenditures of $5,388,341. $3,293,929 out of the $5,388,341 in the Schedule are for the Revolving Loan Fund (RLF) Program under the Economic Adjustment Assistance program. Expenditures reported in the Schedule were calculated as follows:
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The following table presents the expenditures for the City’s federal award programs when there are multiple grant awards.
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In November 2018, the City and the U.S. Environmental Protection Agency (USEPA) executed the WIFIA Program loan in the amount of up to $614,000,000 payable from the Net System Revenues of the Water Utility Fund for the first phase of the Pure Water project. In September 2020, the City and USEPA executed another agreement to replace the previous agreement, with a majority of the terms staying exactly the same, but with a lower interest rate of 1.29%. Construction is anticipated to be completed in May 2028 with annual principal and interest payments on this loan commencing in August, 2024 through August, 2058. For the fiscal year ended June 30, 2025, the City received and expended $152,769,632 from the USEPA related to ALN 66.958. The outstanding loan balance as of June 30, 2025 is $523,450,043.