Notes to SEFA
The accompanying Schedule of Expenditures of Federal Awards (the Schedule) presents the activity of federal award programs administered by the Vergennes-Panton Water District, which is described in Note 1 to the Vergennes-Panton Water District’s accompanying financial statements, using the accrual basis of accounting. Therefore, some amounts presented in this Schedule may differ from amounts presented in or used in the preparation of the District’s financial statements. Federal awards that are included in the Schedule may be received directly from Federal agencies, as well as Federal awards that are passed through from other government agencies. 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 and changes in net position of the District.
xpenditures reported on the Schedule are reported on the modified accrual basis of accounting. The amounts reported as Federal expenditures were obtained from the Federal financial reports for the applicable program and period. The amounts reported in these reports are prepared from records maintained for each program, which are reconciled with the Vergennes-Panton Water District’s financial reporting system
The Vergennes Panton Water District is an independent municipal corporation. All Federal grant operations of the Water District are included in the scope of the single audit.
Nonmonetary assistance is reported in the schedule at the fair market value of the commodities received and disbursed. For the year ended December 31, 2025, the Water District did not receive non-monetary assistance.
The Water District has elected not to use the 10% de minimus indirect cost rate as allowed under the Uniform Guidance. Indirect costs may be included in the reported expenditures, to the extent that they are included in the federal financial reports used as the source for the data presented. The Water District’s policy is not to charge federal award programs with indirect costs.
The accompanying Schedule of Federal Awards (SEFA) includes $6,562 in expenditures for the FEMA Public Assistance Program (ALN 97.036) that were incurred in fiscal year 2024 but approved by FEMA via Program Worksheets in fiscal year 2025. These expenditures are reported in the fiscal year 2025 SEFA, in accordance with the FEMA guidance that requires recording expenditures when the Project Worksheet is approved and the entity has incurred the eligible expenditures.
No insurance is carried specifically to cover equipment purchased with Federal funds. Equipment purchased with Federal funds is covered by the Vergennes Panton Water District’s casualty insurance policy.