Notes to SEFA
The financial reporting entity, as defined by the Governmental Accounting Standard Board (“GASB”) Codification, consists of the primary government, which is the City of Coachella, California (the “City”), organizations for which the primary government is financially accountable, and other organizations for which the nature and significance of their relationship with the primary government are such that exclusion would cause the City’s financial statements to be misleading or incomplete. The City Council acts as the governing body and is able to impose its will on the following organization, establishing financial accountability: Coachella Sanitary District Coachella Water AuthorityCoachella Fire Protection District Coachella Financing Authority
Basis of Accounting Funds received under the various grant programs have been recorded within the special revenue funds, capital projects funds, and enterprise funds of the City. The City’s governmental fund financial statements are reported using the “current financial resources” measurement focus and the modified accrual basis of accounting. The enterprise fund financial statements are accounted for using the "economic resources" measurement focus and the accrual basis of accounting. Grant revenues are recognized when meeting all eligibility requirements and are measurable and available, and expenditures are recorded when a liability is incurred. The accompanying Schedule of Expenditures of Federal Awards (the “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 (the “Uniform Guidance”). Therefore, some amounts presented in the Schedule may differ from amounts presented in, or used in, the preparation of the City’s basic financial statements. Schedule of Expenditures of Federal Awards The accompanying Schedule presents the activity of all federal financial assistance programs of the City. Federal financial assistance passed through the State of California Department of Transportation and the County of Riverside are included in the Schedule. The Schedule was prepared from only the accounts of various grant programs and, therefore, does not present the financial position or results of operations of the City. Indirect Cost Rate The City has not elected to use the de minimis indirect rate as allowed under the Uniform Guidance (10 percent of modified total direct costs for awards issued prior to October 1, 2024 and 15 percent for awards issued or amended on or after October 1, 2024).