Notes to SEFA
The accompanying schedule of expenditures of federal awards (the “schedule”) includes the federal award 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 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.
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.
The District has elected not to use the 15-percent de Minimis indirect cost rate.
The United States Environmental Protection Agency provides grants to reimburse eligible costs related to assist with financing the construction, improvement, and repair of public drinking water systems. The federal government awards funding to the State of Massachusetts’ Massachusetts Clean Water Trust, who provides reimbursements to local governments under this program for some of these project costs incurred.