Notes to SEFA
The accompanying schedule of expenditures of federal awards (the Schedule) is a supplementary schedule to the consolidated financial statements of Turlock Irrigation District (the District), and is presented for purposes of additional analysis. Because the Schedule presents only selected portion activities of the District, it is not intended to, and does not present either the consolidated financial position, consolidated changes in net position or operating revenues and expenses of the District.
Basis of presentation – The accompanying Schedule of Federal Awards (the Schedule) includes all federal grant activity of the District, under programs of the federal government 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). 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 are not considered to be federal financial assistance. Reporting entity – The reporting entity is fully described in Note 1 of the consolidated financial statements (incorporated by reference only). Revenue and expense recognition – As in the consolidated 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. Revenues are recognized when earned, and expenses are recognized when incurred. 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 elected not to use the de minimis indirect cost rate as allowed under Uniform Guidance. No money was passed through to subrecipients.