Notes to SEFA
(a) Scope of Presentation The accompanying schedule presents only the expenditures incurred by the District that are reimbursable by agencies providing federal assistance. For the purposes of this schedule, federal financial assistance includes both federal financial assistance received directly from a federal agency, as well as federal funds received indirectly from a non-federal agency or other organization. Only the portion of program expenditures reimbursable with such federal funds are reported in the accompanying schedule. Program expenditures in excess of the maximum federal reimbursement authorized or the portion of the program expenditures that were funded with state, local or other non-federal funds are excluded from the accompanying schedule. The District did not use the 10% de minimis indirect cost rate covered in section 200.414 of the Uniform Guidance. (b) Basis of Accounting The expenditures included in the accompanying schedule were reported on the accrual basis of accounting. Under the accrual basis of accounting, expenditures are recognized when incurred. Expenditures reported include any property or equipment acquisitions incurred under the federal program.
The District uses funds available under Water Infrastructure Finance and Innovation Act (WIFIA) Loan Agreement with the U.S. Environmental Protection Agency (EPA) Revolving Loan to fund the Pure Water Soquel Project. Disbursements of such loans are included as expenditures in the accompanying schedule of expenditures of federal awards in the year of disbursement. The balances are included in the accompanying schedule.