Title: WATER INFRASTRUCTURE FINANCE AND INNOVATION (WIFIA) LOAN AGREEMENT
Accounting Policies: Expenditures reported in the accompanying Schedule are presented using the modified accrual basis of accounting for grants accounted for in the governmental fund types and the accrual basis of accounting for grants accounted for in the proprietary fund types, as described in Note 1.c. in the notes to the Citys basic financial statements. 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. Negative amounts shown in the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. The negative amount of $10,819 reported for Assistance Listing Number (ALN) 97.036, Disaster Grants Public Assistance (Presidentially Declared disasters) grant number FEMA-4305-DR-CA 073-66000 represents a refund to the funding agency due to the funding agencys obligation amount to the City being changed.
De Minimis Rate Used: Both
Rate Explanation: The City elected not to use the 10 percent de minims indirect cost rate allowed under the Uniform Guidance, except for the Homeland Security Grant Program passed through the California Governors Office of Emergency Services (ALN 97.067, Homeland Security Grant Program grant numbers 2018-0054/0073-66000, 2019-0035/0073-66000 and 2020-0095/073-66000).
In November 2018, the City and the U.S. Environmental Protection Agency (USEPA) executed the WIFIA Program loan in the amount of up to $614,000,000 payable from the Net System Revenues of the Water Utility Fund for the first phase of the Pure Water project. In September 2020, the City and USEPA executed another agreement to replace the previous agreement, with a majority of the terms staying exactly the same, but with a lower interest rate of 1.29%. Construction is anticipated to be completed in March 2027 with annual principal and interest payments on this loan commencing in August, 2024 through August, 2057. For the fiscal year ended June 30, 2022, the City received and expended $74,392,873 from the USEPA related to ALN 66.958. The outstanding loan balance as of June 30, 2022 is $83,951,866.
Title: Basis of Presentation
Accounting Policies: Expenditures reported in the accompanying Schedule are presented using the modified accrual basis of accounting for grants accounted for in the governmental fund types and the accrual basis of accounting for grants accounted for in the proprietary fund types, as described in Note 1.c. in the notes to the Citys basic financial statements. 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. Negative amounts shown in the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. The negative amount of $10,819 reported for Assistance Listing Number (ALN) 97.036, Disaster Grants Public Assistance (Presidentially Declared disasters) grant number FEMA-4305-DR-CA 073-66000 represents a refund to the funding agency due to the funding agencys obligation amount to the City being changed.
De Minimis Rate Used: Both
Rate Explanation: The City elected not to use the 10 percent de minims indirect cost rate allowed under the Uniform Guidance, except for the Homeland Security Grant Program passed through the California Governors Office of Emergency Services (ALN 97.067, Homeland Security Grant Program grant numbers 2018-0054/0073-66000, 2019-0035/0073-66000 and 2020-0095/073-66000).
The accompanying Schedule of Expenditures of Federal Awards (Schedule) presents the activity of all federal award programs of the City of San Diego, California (City). The Schedule excludes the federal award programs of the San Diego Housing Commission (refer to Note 5). Federal awards received directly from federal agencies as well as federal awards passed through other nonfederal agencies, primarily the State of California (State), are included in the Schedule. The Citys reporting entity is defined in Note 1.a. in the notes to the Citys basic financial statements. Because the Schedule presents only a selected portion of the operations of the City, it is not intended to and does not, present the financial position of the City. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, some amounts presented in this Schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements.
Title: Assistance Listing Numbers
Accounting Policies: Expenditures reported in the accompanying Schedule are presented using the modified accrual basis of accounting for grants accounted for in the governmental fund types and the accrual basis of accounting for grants accounted for in the proprietary fund types, as described in Note 1.c. in the notes to the Citys basic financial statements. 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. Negative amounts shown in the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. The negative amount of $10,819 reported for Assistance Listing Number (ALN) 97.036, Disaster Grants Public Assistance (Presidentially Declared disasters) grant number FEMA-4305-DR-CA 073-66000 represents a refund to the funding agency due to the funding agencys obligation amount to the City being changed.
De Minimis Rate Used: Both
Rate Explanation: The City elected not to use the 10 percent de minims indirect cost rate allowed under the Uniform Guidance, except for the Homeland Security Grant Program passed through the California Governors Office of Emergency Services (ALN 97.067, Homeland Security Grant Program grant numbers 2018-0054/0073-66000, 2019-0035/0073-66000 and 2020-0095/073-66000).
The ALNs included in the accompanying Schedule were determined based on the federal program name, review of grant contract information, and the Office of Management and Budgets Catalog of Assistance Listings.
Title: SAN DIEGO HOUSING COMMISSION (DISCRETELY PRESENTED COMPONENT UNIT) FEDERAL
Accounting Policies: Expenditures reported in the accompanying Schedule are presented using the modified accrual basis of accounting for grants accounted for in the governmental fund types and the accrual basis of accounting for grants accounted for in the proprietary fund types, as described in Note 1.c. in the notes to the Citys basic financial statements. 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. Negative amounts shown in the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. The negative amount of $10,819 reported for Assistance Listing Number (ALN) 97.036, Disaster Grants Public Assistance (Presidentially Declared disasters) grant number FEMA-4305-DR-CA 073-66000 represents a refund to the funding agency due to the funding agencys obligation amount to the City being changed.
De Minimis Rate Used: Both
Rate Explanation: The City elected not to use the 10 percent de minims indirect cost rate allowed under the Uniform Guidance, except for the Homeland Security Grant Program passed through the California Governors Office of Emergency Services (ALN 97.067, Homeland Security Grant Program grant numbers 2018-0054/0073-66000, 2019-0035/0073-66000 and 2020-0095/073-66000).
The San Diego Housing Commission (SDHC) federal expenditures of $460,557,905 are excluded from the Citys Schedule because the SDHC federal expenditures are separately audited by other auditors and reported in a separate Uniform Guidance report.
Title: Economic Adjustment Assistance Program (ALN 11.307)
Accounting Policies: Expenditures reported in the accompanying Schedule are presented using the modified accrual basis of accounting for grants accounted for in the governmental fund types and the accrual basis of accounting for grants accounted for in the proprietary fund types, as described in Note 1.c. in the notes to the Citys basic financial statements. 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. Negative amounts shown in the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. The negative amount of $10,819 reported for Assistance Listing Number (ALN) 97.036, Disaster Grants Public Assistance (Presidentially Declared disasters) grant number FEMA-4305-DR-CA 073-66000 represents a refund to the funding agency due to the funding agencys obligation amount to the City being changed.
De Minimis Rate Used: Both
Rate Explanation: The City elected not to use the 10 percent de minims indirect cost rate allowed under the Uniform Guidance, except for the Homeland Security Grant Program passed through the California Governors Office of Emergency Services (ALN 97.067, Homeland Security Grant Program grant numbers 2018-0054/0073-66000, 2019-0035/0073-66000 and 2020-0095/073-66000).
In accordance with guidance provided by the U.S. Department of Commerce contained in the OMB Compliance Supplement, the City has reported federal award expenditures of $3,236,684 in the Schedule for the Revolving Loan Fund (RLF) Program under the Economic Adjustment Assistance program. Expenditures reported in the Schedule were calculated as follows: See Table in Notes to the SEFA.
Title: EMERGENCY RENTAL ASSISTANCE
Accounting Policies: Expenditures reported in the accompanying Schedule are presented using the modified accrual basis of accounting for grants accounted for in the governmental fund types and the accrual basis of accounting for grants accounted for in the proprietary fund types, as described in Note 1.c. in the notes to the Citys basic financial statements. 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. Negative amounts shown in the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. The negative amount of $10,819 reported for Assistance Listing Number (ALN) 97.036, Disaster Grants Public Assistance (Presidentially Declared disasters) grant number FEMA-4305-DR-CA 073-66000 represents a refund to the funding agency due to the funding agencys obligation amount to the City being changed.
De Minimis Rate Used: Both
Rate Explanation: The City elected not to use the 10 percent de minims indirect cost rate allowed under the Uniform Guidance, except for the Homeland Security Grant Program passed through the California Governors Office of Emergency Services (ALN 97.067, Homeland Security Grant Program grant numbers 2018-0054/0073-66000, 2019-0035/0073-66000 and 2020-0095/073-66000).
The federal Emergency Rental Assistance (ERA) program makes funding available to assist households that are unable to pay rent or utilities due to the COVID-19 pandemic. Two separate programs have been established: ERA1 provides up to $25 billion under the Consolidated Appropriations Act, 2021, which was enacted on December 27, 2020, and ERA2 provides up to $21.55 billion under the American Rescue Plan Act of 2021, which was enacted on March 11, 2021. The City was awarded and received $108,264,545 and $121,251,842 for ERA1 and ERA2, respectively. Additionally, the City have been awarded $74,897,774 of ERA Reallocation funds passed through from the State of California.The City entered a memorandum of understanding for the administration of the COVID-19 Housing Stability Assistance Program (HSAP MOU) with the SDHC on March 2021. The City Council and the SDHC Housing Authority approved and authorized to transfer the awarded amount of the ERA programs to the SDHC to administrate the COVID-19 Housing Stability Assistance Program (HSAP Program). Upon the HSAP MOU, the SDHC is responsible for operation and oversight of the HSAP program in compliance with the HSAP Program policy and guidelines as well as the compliance requirements of the federal ERA program. Therefore, the accompanying SEFA does not contain ERA 1, ERA 2, and ERA Reallocation expenditures.
Title: FEDERAL AWARD PROGRAM EXPENDITURES BY GRANT AWARD
Accounting Policies: Expenditures reported in the accompanying Schedule are presented using the modified accrual basis of accounting for grants accounted for in the governmental fund types and the accrual basis of accounting for grants accounted for in the proprietary fund types, as described in Note 1.c. in the notes to the Citys basic financial statements. 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. Negative amounts shown in the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. The negative amount of $10,819 reported for Assistance Listing Number (ALN) 97.036, Disaster Grants Public Assistance (Presidentially Declared disasters) grant number FEMA-4305-DR-CA 073-66000 represents a refund to the funding agency due to the funding agencys obligation amount to the City being changed.
De Minimis Rate Used: Both
Rate Explanation: The City elected not to use the 10 percent de minims indirect cost rate allowed under the Uniform Guidance, except for the Homeland Security Grant Program passed through the California Governors Office of Emergency Services (ALN 97.067, Homeland Security Grant Program grant numbers 2018-0054/0073-66000, 2019-0035/0073-66000 and 2020-0095/073-66000).
The following table presents the expenditures for the Citys federal award programs when there are multiple grant awards. See Table in Notes to the SEFA. The negative amount of $1,346,927 reported for ALN 14.218, Community Development Block Grants/Entitlement Grants program grant number B-20-MC-06-0542 represents correction of prior years federal expenditures. The City made an advance to a subrecipient in prior year, however the advance amount was returned by the subrecipient in the current fiscal year since they did not meet agreement terms. The negative amount of $230 reported for ALN 14.231, Emergency Solutions Grant Program grant number E- 19-MC-06-0542, represents correction of expenditures in prior year that moved to another funding source in the current fiscal year. The negative amounts of $778 reported for ALN 20.205, Highway Planning and Construction grant number HPLUL- 004(177), and $1,429 reported for ALN 20.600, State and Community Highway Safety grant number PT20154, represents expenditures incurred and reported in the Schedule in prior years that were ineligible and moved to another funding source in the current fiscal year.