Notes to SEFA
Title: NOTE 1: GENERAL
Accounting Policies: The accompanying schedule of expenditures of federal awards is presented using the accrual basis of accounting in accordance with generally accepted accounting principles as further described in Note 2 of the basic financial statements. Federal revenues are considered to be earned to the extent of expenditures made under the provisions of the grant, and accordingly, when such funds are received they are recorded as deferred revenue until earned.
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 presents expenditures of all federal financial assistance programs that were in effect for the year ended December 31, 2023, for the Austin Revitalization Authority and its affiliate and subsidiaries (collectively, the Organizations). The Organizations' reporting entity is defined in Note 1 of the basic financial statements. Federal financial assistance received directly from federal agencies as well as federal financial assistance passed through other government agencies are included on the schedule.
Title: NOTE 2: BASIS OF ACCOUNTING
Accounting Policies: The accompanying schedule of expenditures of federal awards is presented using the accrual basis of accounting in accordance with generally accepted accounting principles as further described in Note 2 of the basic financial statements. Federal revenues are considered to be earned to the extent of expenditures made under the provisions of the grant, and accordingly, when such funds are received they are recorded as deferred revenue until earned.
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 is presented using the accrual basis of accounting in accordance with generally accepted accounting principles as further described in Note 2 of the basic financial statements. Federal revenues are considered to be earned to the extent of expenditures made under the provisions of the grant, and accordingly, when such funds are received they are recorded as deferred revenue until earned.
Title: NOTE 3: NOTES PAYABLE
Accounting Policies: The accompanying schedule of expenditures of federal awards is presented using the accrual basis of accounting in accordance with generally accepted accounting principles as further described in Note 2 of the basic financial statements. Federal revenues are considered to be earned to the extent of expenditures made under the provisions of the grant, and accordingly, when such funds are received they are recorded as deferred revenue until earned.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The notes payable of $4,400,000 and $1,100,000 to the City of Austin dated April 9, 2003, for the East Austin Redevelopment Area of East 11th and 12th Streets were consolidated into one note in the fourth debt modification agreement effective December 19, 2012. There were no additional expenditures of funds on the grants during 2023. They are included on the schedule because of the unpaid balances and continuing compliance requirements. The activity of the notes payable as shown below: See the Notes to the SEFA for table.
Title: NOTE 4: INDIRECT COST RATE
Accounting Policies: The accompanying schedule of expenditures of federal awards is presented using the accrual basis of accounting in accordance with generally accepted accounting principles as further described in Note 2 of the basic financial statements. Federal revenues are considered to be earned to the extent of expenditures made under the provisions of the grant, and accordingly, when such funds are received they are recorded as deferred revenue until earned.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The Organizations have not elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.