Notes to SEFA
The accompanying Schedule of Expenditures of Federal Awards (Schedule) presents the expenditures of federal awards of the Snohomish County Public Utility District No. 1 (the District) for the year ended December 31, 2025. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) 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 net position, changes in net position, or cash flows of the District. The District’s reporting entity is defined in Note 1 of the PUD’s financial statements. All federal awards from federal agencies are included in the Schedule.
The accompanying Schedule is prepared on the same basis of accounting as the PUD’s financial statements. The PUD uses the accrual basis of accounting, whereby expenditures are recorded when incurred (i.e., when goods are received, or services provided). Such expenditures are recognized following the cost principles in Uniform Guidance wherein certain types of expenditures are not allowable or limited as to reimbursement. Expenditures reported include any property or equipment acquisitions incurred under federal programs. Pass-through identifying numbers are presented where available. The amount shown as current year expenditures represent only the federal grant portion of the program costs. Entire program costs, including the District’s portion, are more than shown. The District does not have a negotiated indirect rate in place and has elected to waive indirect cost recovery utilizing the de minimis indirect cost rate as described in 2 CFR 200.414.
In September 2024, the District entered into a cost reimbursement grant agreement with the U.S. Department of Energy Grid Deployment Office for a Grid Resilience and Innovation Partnership (GRIP) grant. The total program is budgeted for $63,039,833, with $30,000,000 of federal funding, and $33,039,833 of cost share funds. As of December 31, 2025, the District recognized $4,374,758 in federal grant expenditure, and $4,374,758 in District cost share expenditures associated with this project