Notes to SEFA
Title: Basis of Presentation
Accounting Policies: Expenditures reported on the schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in OMB Compliance Supplement and the State of Texas Uniform Grant Management Standards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Amounts reported as expenditures in the accompanying schedule of expenditures of federal and state awards may not agree with the amounts reported in the related federal and state financial reports filed with the grantor agencies because of accruals which would be included in the next report filed with the agency.
De Minimis Rate Used: N
Rate Explanation: The City has elected not to use the 10% de minimis indirect cost rate as allowed under Uniform Guidance.
The accompanying schedule of expenditures of federal and state awards (the Schedule) includes the federal and state grant activity of the City under programs of the federal and state government for the year ended September 30, 2022. The information in this schedule is presented in accordance with the requirements of the Uniform Guidance and the State of Texas Single Audit Circular. Because the schedule presents only a selected portion of the operations of the City, it is not intended to and does not present the financial position, changes in net position or cash flows of the City. The City has elected not to use the 10% de minimis indirect cost rate as allowed under Uniform Guidance. The non-cash assistance received by the City is recorded at its estimated market value.
Title: Federal Transit Administration
Accounting Policies: Expenditures reported on the schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in OMB Compliance Supplement and the State of Texas Uniform Grant Management Standards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Amounts reported as expenditures in the accompanying schedule of expenditures of federal and state awards may not agree with the amounts reported in the related federal and state financial reports filed with the grantor agencies because of accruals which would be included in the next report filed with the agency.
De Minimis Rate Used: N
Rate Explanation: The City has elected not to use the 10% de minimis indirect cost rate as allowed under Uniform Guidance.
The City serves as the designated recipient for the federal and state grant funds received for the benefit of the Midland Odessa Urban Transit District (MOUTD). Federal and state transit grant funds are in the name of the City who collects the funds based on MOUTD’s request for funds. The City disburses the grant funds to MOUTD as requested. The City has signed a designation of signature authority which allows MOUTD to file the grant reports and request funds.
The federal and state grant money received by MOUTD is awarded to the City. The City is the designated recipient and is responsible for the funds and for all reporting required by the Federal Transit Administration (FTA). The FTA does not allow this to be shown as pass through to MOUTD.
Title: COVID-19 Coronavirus State and Local Fiscal Recovery Funds
Accounting Policies: Expenditures reported on the schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in OMB Compliance Supplement and the State of Texas Uniform Grant Management Standards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Amounts reported as expenditures in the accompanying schedule of expenditures of federal and state awards may not agree with the amounts reported in the related federal and state financial reports filed with the grantor agencies because of accruals which would be included in the next report filed with the agency.
De Minimis Rate Used: N
Rate Explanation: The City has elected not to use the 10% de minimis indirect cost rate as allowed under Uniform Guidance.
The City provided a loan to a local health care provider in the amount of $3,000,000 to be repaid by December 31, 2023. The principal amount of the loan is reported as passed through to the subrecipient in the schedule of expenditures of federal awards and as a receivable in the State and Local Recovery Fund. The loan was repaid in full in January 2023 and considered to be within the City’s period of availability.