Audit 353831

Title: OUTSTANDING LOANS Accounting Policies: The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal grant activity of the City of San Angelo, Texas (the “City”) under programs of the federal government for the year ended September 30, 2024. The information in this schedule is presented in accordance with the requirements of the Office of Management and Budget (OMB) Uniform Guidance. Because the Schedule presents 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 accounts for awards under federal programs in the General, Capital Projects, and Special Revenue governmental funds, as well as the Water and Airport enterprise funds. The Schedule includes all federal awards expended by the City, regardless of whether the award was received directly from the federal agency or passed through another agency. Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. 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. Negative amounts, if any, shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: Y Rate Explanation: The City has elected to use the de minimis indirect cost rate as allowed in the Uniform Guidance, Section 414. The City has provided loans through the HOME Investment Partnership Program. The outstanding balance of loans at September 30, 2024 was $36,871.