Title: BASIS OF ACCOUNTING AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (SEFA) was presented on the accrual basis of accounting, and presents the activity of all federal awards to the City of Austin, Texas (the City). The information in the SEFA is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance).
De Minimis Rate Used: N
Rate Explanation: The City elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
The accompanying Schedule of Expenditures of Federal Awards (SEFA) was presented on the accrual basis of accounting, and presents the activity of all federal awards to the City of Austin, Texas (the City). The information in the SEFA is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Some amounts presented in the SEFA may differ from amounts presented in, or used in the preparation of, the basic financial statements.
The amounts reported as expenditures in the SEFA may not agree with the amounts reported in the financial reports filed with grantor agencies due to accruals, which would be included in the next report filed with the agency. Negative amounts shown in the SEFA represent corrections, adjustments or credits made to amounts reported as expenditures in prior years.
The SEFA included certain program expenditures that relate to prior years. The programs affected are as follows:
Title: DE MINIMIS INDIRECT COST RATE
Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (SEFA) was presented on the accrual basis of accounting, and presents the activity of all federal awards to the City of Austin, Texas (the City). The information in the SEFA is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance).
De Minimis Rate Used: N
Rate Explanation: The City elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
The City elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
Title: DISASTER GRANTS-PUBLIC ASSISTANCE (PRESIDENTIALLY DECLARED DISASTERS PROGRAM)
Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (SEFA) was presented on the accrual basis of accounting, and presents the activity of all federal awards to the City of Austin, Texas (the City). The information in the SEFA is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance).
De Minimis Rate Used: N
Rate Explanation: The City elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
Reconciliation of Federal Expenditures related to Disaster Grants-Public Assistance Listing Number (ALN) 97.036; reported in the Schedule of Expenditures of Federal Awards to the City’s Consolidated Financial Statements - There are six declared disasters in Austin, Texas that are still active: Halloween 2013, Memorial Day 2015, Halloween 2015, Hurricane Harvey, Texas Severe Storms, and Texas Covid-19 Pandemic. The City expects to recoup some of the cost associated with the repair and rebuilding of damaged assets over the next several years from insurance, federal government assistance and operating funds. The declared disaster of Texas Severe Storms did not receive any reimbursements during fiscal year 2023. "Below is the reconciliation of Federal Expenditures related to the disaster grant-Public Assistance (Presidentially Declared Disasters) ALN 97.036, reported in the Schedule of Expenditures of Federal Awards to the City financial statements."
Title: LOANS
Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (SEFA) was presented on the accrual basis of accounting, and presents the activity of all federal awards to the City of Austin, Texas (the City). The information in the SEFA is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance).
De Minimis Rate Used: N
Rate Explanation: The City elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
In addition to federal awards involving expenditures in 2023, the City has federally guaranteed loans outstanding as of September 30, 2023 with the Department of Housing and Urban Development. These loans are related to the Section 108 Loan Program (ALN 14.248).
Four of the Section 108 loans have remaining balances to be disbursed (i.e., awarded) by the City at September 30, 2023. The remaining loan balances at September 30, 2023, are as follows:
Title: LOANS TO THIRD PARTIES
Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (SEFA) was presented on the accrual basis of accounting, and presents the activity of all federal awards to the City of Austin, Texas (the City). The information in the SEFA is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance).
De Minimis Rate Used: N
Rate Explanation: The City elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
The City uses CDBG and HOME funds to grant loans to low and moderate-income individuals. As of September 30, 2023, the balance of the loans receivable was approximately $31,789,448.