Notes to SEFA
The accompanying Schedule of Expenditures of Federal Awards (Schedule) includes the federal awards activity of Philadelphia Gas Works (PGW) under programs of the federal government for the year ended August 31, 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 PGW, it is not intended to and does not present the financial position, changes in net assets, or cash flows of PGW. There were no federal funds passed through to subrecipients for the year ended August 31, 2025.
The accounting and reporting policies of PGW are set forth below: a. Basis of Presentation – The accompanying Schedule is presented on the modified accrual basis of accounting. Accordingly, expenditures are recognized when the liability is incurred. 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. b. PGW has elected to use the 10-percent de minimis indirect cost rate for labor as allowed under the Uniform Guidance for the Natural Gas Distribution Infrastructure Safety and Modernization (NGDISM) grant. PGW has not elected to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance for the Clean Energy Demonstrations grant.