Notes to SEFA
The accompanying schedule of expenditures of federal awards (the Schedule) includes the award activity of Public Utility District No. 1 of Lewis County (the District) for the year ended December 31, 2025, and is presented for purposes of additional analysis as required by Title 2 US 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 the District, it is not intended to and does not present the financial position, changes in net position, or cash flows of the District.
Basis of presentation – The information in the Schedule is presented in accordance with the 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. 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. Expense recognition – Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The District did not elect to use the de minimis indirect cost rate as allowed under Uniform Guidance.