Notes to SEFA
Title: Note B – Contingencies
Accounting Policies: The City of Irving, Texas (the City) accounts for its grants in General Fund, ARPA Fund, and Special Revenue Funds. Special Revenue Funds are governmental funds used to account for resources restricted to, or designated for, specific purposes by a grantor. Generally, unused balances are returned to the grantor at the close of specified project periods.
The accompanying Schedule of Expenditures of Federal Awards (SEFA) includes the federal grant activity of the City, and is presented on the modified accrual basis of accounting as described in Note 1(b) to the basic financial statements for the year ended September 30, 2023 except for Community Development Block Grant – Section 108 Loan Guarantees (Section 108). 2 CFR Section 200.502(b)(2) requires that the SEFA present loan guarantees as the value of new loans made or received during the audit period plus beginning of the audit period balance of loans from previous years for which the Federal Government imposes continuing compliance requirements. The beginning balance of the Section 108 loan guarantee in fiscal year 2023 is therefore presented on the SEFA.
Federal grant funds are considered to be earned to the extent of expenditures made under the provisions of the grant and when all eligibility requirements have been met, and, accordingly, when such funds are received, they are recorded as unavailable until earned.
The period of performance for federal grant funds for the purpose of liquidation of outstanding obligations made on or before the ending date of the federal project period extends 90 days beyond the federal project period ending date, in accordance with provisions in Subpart D – Post Federal Award Requirements – Closeout, Section 200.343 (b) Uniform Guidance.
De Minimis Rate Used: N
Rate Explanation: The City has elected not to use the 10% deminimis indirect cost rate.
The City participates in several grant programs, which are governed by various rules and regulations of the grantor agencies. Costs charged to the respective grant programs are subject to audit and adjustment by the grantor agencies. Therefore, to the extent that the City has not complied with the rules and regulations governing the grants, refunds of any money received may be required, and the collectability of any related receivable at September 30, 2023 may be impaired. In the opinion of management, there are no significant contingent liabilities relating to compliance with the rules and regulations governing the respective grants.
Title: Note D – Outstanding Loan Balances
Accounting Policies: The City of Irving, Texas (the City) accounts for its grants in General Fund, ARPA Fund, and Special Revenue Funds. Special Revenue Funds are governmental funds used to account for resources restricted to, or designated for, specific purposes by a grantor. Generally, unused balances are returned to the grantor at the close of specified project periods.
The accompanying Schedule of Expenditures of Federal Awards (SEFA) includes the federal grant activity of the City, and is presented on the modified accrual basis of accounting as described in Note 1(b) to the basic financial statements for the year ended September 30, 2023 except for Community Development Block Grant – Section 108 Loan Guarantees (Section 108). 2 CFR Section 200.502(b)(2) requires that the SEFA present loan guarantees as the value of new loans made or received during the audit period plus beginning of the audit period balance of loans from previous years for which the Federal Government imposes continuing compliance requirements. The beginning balance of the Section 108 loan guarantee in fiscal year 2023 is therefore presented on the SEFA.
Federal grant funds are considered to be earned to the extent of expenditures made under the provisions of the grant and when all eligibility requirements have been met, and, accordingly, when such funds are received, they are recorded as unavailable until earned.
The period of performance for federal grant funds for the purpose of liquidation of outstanding obligations made on or before the ending date of the federal project period extends 90 days beyond the federal project period ending date, in accordance with provisions in Subpart D – Post Federal Award Requirements – Closeout, Section 200.343 (b) Uniform Guidance.
De Minimis Rate Used: N
Rate Explanation: The City has elected not to use the 10% deminimis indirect cost rate.
The City participates in the Community Development Block Grant Section 108 Loan Guarantee Program (Assistance Listing Number 14.248). The activity of the City’s Section 108 loans guaranteed by the U.S. Department of Housing and Urban Development is as follows: