Audit 46030

Title: Reporting Entity Accounting Policies: Expenditures reported on the Schedule are reported on the full accrual basis of accounting. Such expenditures arerecognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures arenot allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The East County Advanced Water Purification Joint Powers Authority (the Authority) was established on November 1, 2019 pursuant to the Joint Exercise of Powers Act (California Government Code Section 6500 et seq.) and a Joint Exercise of Powers Agreement (JPA Agreement) between three Member Agencies: Padre DamMunicipal Water District (Padre Dam), the City of El Cajon (El Cajon) and the San Diego County Sanitation District (the SDCSD). The Board of Directors of the Authority (Board) is composed of Directors representing each Member Agency. Helix Water District (Helix) is a non-voting, ex-officio member of the Authoritys Board.The purpose of the Authority is to plan for, design, construct, own, lease, operate, maintain, repair, and replace a reclamation facility for the purpose of the advanced treatment of wastewater and production of advanced purified water. The Authority is authorized to exercise the powers common to the Member Agencies, powers otherwisepermitted under the Joint Exercise of Powers Act, and powers necessary to accomplish the purposes of the JPA Agreement, subject to such restrictions as are applicable to the City of El Cajon, a charter city organized and operating under Article XI of the California Constitution. The Authority is further authorized to do all acts necessary, convenient and appropriate for the exercise of its powers as further described in the JPA Agreement.Ultimately the Authority will serve as a wastewater treatment facility for its three member agencies. The Authority will also produce and sell product water to Helix Water District (Helix) and product and Title 22 water to Padre Dam.The criteria used in determining the scope of the reporting entity is based on the provisions of GASB Code Sections 2100 Defining the Financial Reporting Entity. The Authority is the primary government unit. Component units are those entities which are financially accountable to the primary government, either because the Authority appoints a voting majority of the component units board, or because the component unit will provide a financial benefit or impose a financial burden on the Authority. The Authority has no component units.

Title: Basis of Presentation Accounting Policies: Expenditures reported on the Schedule are reported on the full accrual basis of accounting. Such expenditures arerecognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures arenot allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The accompanying Schedule of Expenditures of Federal Awards (Schedule) includes the federal award activity of the East County Advanced Water Purification Joint Powers Authority (the Authority) under programs of the federal government for the year ended June 30, 2022. 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 Authority, it is not intended to and does not present the financial statements of the Authority. The Authoritys reporting entity is defined in Note 1 of the notes to the Authoritys financial statements.

Title: Subrecipients Accounting Policies: Expenditures reported on the Schedule are reported on the full accrual basis of accounting. Such expenditures arerecognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures arenot allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The Authority did not provide any amounts to subrecipients during the fiscal year ended June 30, 2022.

Title: Contingencies Accounting Policies: Expenditures reported on the Schedule are reported on the full accrual basis of accounting. Such expenditures arerecognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures arenot allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Under the terms of federal and state grants, additional audits may be requested by the grantor agencies and certain costs may be questioned as not being appropriate expenditures under the terms of the grants. Such audits could lead to a request for reimbursement to the grantor agencies.