Title: BASIS OF PRESENTATION
Accounting Policies: Basis of Accounting - The Schedule of Expenditures of Federal and State 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.
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. Revenue Recognition - Federal awards programs are reported in the City’s financial statements as follows:
Governmental Funds - Intergovernmental Revenue and Grants $ 3,558,798
Governmental Activities - Capital Grants and Contributions -
Plus: Water Works & Sewer System Expenditures
DWSRF Expenditures ALN 66.468 3 ,117,705
Total Revenue, Grants and Loans 6,676,503
Less: Total Expenditures of State Awards (1,472,160)
Less: Other Awards (520,036)
Total State and Other Awards (1,992,196)
Total Federal Financial Assistance $ 4,684,307
Relationship to Federal Financial Reports - Amounts reported in the
accompanying schedule may not agree with the amounts reported in the related Federal financial reports filed with grantor agencies because of different program year-ends, different methods of accounting (cash versus modified accrual basis), and estimates made by management.
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 and State 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: DRINKING WATER STATE REVOLVING FUND (DWSRF) LOAN PROGRAM
Accounting Policies: Basis of Accounting - The Schedule of Expenditures of Federal and State 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.
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. Revenue Recognition - Federal awards programs are reported in the City’s financial statements as follows:
Governmental Funds - Intergovernmental Revenue and Grants $ 3,558,798
Governmental Activities - Capital Grants and Contributions -
Plus: Water Works & Sewer System Expenditures
DWSRF Expenditures ALN 66.468 3 ,117,705
Total Revenue, Grants and Loans 6,676,503
Less: Total Expenditures of State Awards (1,472,160)
Less: Other Awards (520,036)
Total State and Other Awards (1,992,196)
Total Federal Financial Assistance $ 4,684,307
Relationship to Federal Financial Reports - Amounts reported in the
accompanying schedule may not agree with the amounts reported in the related Federal financial reports filed with grantor agencies because of different program year-ends, different methods of accounting (cash versus modified accrual basis), and estimates made by management.
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.
DWSRF State Revolving Fund Loan Program – Loan program commitment for financial assistance represents a pass-through federal award provided by the Environmental Protection Agency and approved by the Texas Water Development Board (TWDB). Federal award contains requirements imposed by
federal law, federal regulations, and the loan or grant agreement. DWSRF State Revolving Loan Program pass through TWDB are reported in the City’s financial statements as follows:
Balance September 30, 2023
L1000103 $ 2,920,000
LM16100561 14,530,000
LM17100561 10,880,000
LM18100561 14,065,000
LF1001155 3,400,000
Total $ 45,795,000