Notes to SEFA
The accompanying Schedule of Expenditures of Federal Awards (the Schedule) presents the activity of all federal award programs of the Public Utility District No. 1 of Okanogan County, Washington (the District) for the year ended December 31, 2025. The information in the Schedule is presented in accordance with 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 financial position, changes in net position, or cash flows of the District.
Federal financial assistance – Pursuant to the Uniform Guidance, federal financial assistance is defined as assistance provided by a federal agency, either directly or indirectly, in the form of grants, contracts, cooperative agreements, loans, loan guarantees, property, interest subsidies, insurance, or direct appropriations. Nonmonetary assistance is included in the Schedule, if applicable. Federal financial assistance does not include direct federal cash assistance to individuals or solicited contracts between the state and federal government through which the federal government procures tangible goods or services. Reporting entity – The reporting entity is fully described in Note 1 of the financial statements (incorporated by reference only). Additionally, the Schedule includes all federal programs administered by the District for the year ended December 31, 2025. Revenue and expense recognition – As in the financial statements, the receipt and recognition as expense of federal awards are accounted for using a flow of economic resources measurement focus to determine financial position and change in financial position. The accounting principles used are similar to those applicable in businesses in the private sector and are maintained on the accrual basis of accounting. Expenditures reported on the Schedule are reported on the accrual basis of accounting. 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. Grantor agency guidelines require that the entire amount of the assistance be recognized on the Schedule in the year the award was appropriated.
The District has not elected to use the de minimis indirect cost rate allowed under the Uniform Guidance.
The District incurred eligible disaster-related expenditures between 2020 and 2025 under Assistance Listing 97.036. Related agencies approved and appropriated the related federal assistance during 2025. Consistent with the District’s accounting policy, the full amount of the federal award was recognized on the Schedule of Expenditures of Federal Awards in 2025.