Title: Note 1: Basis of Presentation
Accounting Policies: Basis of accounting- The Schedule of Expenditures of Federal Awards is prepared on the modified accrual basis of accounting. The modified accrual basis of accounting is described in note 1 of the basic financial statements. Federal grant funds 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 revenues until earned. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Capitalization grants for drinking water revolving fund bond program The capitalization grants for drinking water revolving fund bond program is administered by the United States Department of Agriculture and balances and transactions relating to this program is included in the City of Del Rio’s basic financial statements. The Schedule of Expenditure of Federal Awards includes the amount of funds used by the City for the bond project. The balance of the bond and remaining amount at September 30, 2023 were $8,270,000, with unspent portion of $8,251,006.
De Minimis Rate Used: N
Rate Explanation: The City has not elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.
The accompanying Schedule of Expenditures of Federal Awards (SEFA) includes the federal and state grant activity of the City for the year ended September 30, 2023. The information in the SEFA is presented in accordance with 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 SEFA 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.
Title: Note 2: Summary of Significant Accounting Policies
Accounting Policies: Basis of accounting- The Schedule of Expenditures of Federal Awards is prepared on the modified accrual basis of accounting. The modified accrual basis of accounting is described in note 1 of the basic financial statements. Federal grant funds 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 revenues until earned. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Capitalization grants for drinking water revolving fund bond program The capitalization grants for drinking water revolving fund bond program is administered by the United States Department of Agriculture and balances and transactions relating to this program is included in the City of Del Rio’s basic financial statements. The Schedule of Expenditure of Federal Awards includes the amount of funds used by the City for the bond project. The balance of the bond and remaining amount at September 30, 2023 were $8,270,000, with unspent portion of $8,251,006.
De Minimis Rate Used: N
Rate Explanation: The City has not elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.
Basis of accounting- The Schedule of Expenditures of Federal Awards is prepared on the modified accrual basis of accounting. The modified accrual basis of accounting is described in note 1 of the basic financial statements. Federal grant funds 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 revenues until earned. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Capitalization grants for drinking water revolving fund bond program The capitalization grants for drinking water revolving fund bond program is administered by the United States Department of Agriculture and balances and transactions relating to this program is included in the City of Del Rio’s basic financial statements. The Schedule of Expenditure of Federal Awards includes the amount of funds used by the City for the bond project. The balance of the bond and remaining amount at September 30, 2023 were as follows: wastewater fund 2019A bond outstanding $470,000 with unspent portion of $297,300, wastewater fund 2019C bond outstanding $5,130,000 with unspent portion $5,244,586, water fund 2019B bond outstanding of $2,670,000 with unspent portion of $2,709,120 for a total of bond outstanding of $8,270,000 with unspent portion totaling $8,251,006. The City has not elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. Pass-through entity identifying numbers are presented where available.