Title: Basis of Presentation
Accounting Policies: Expenditures reported on the SEFSA are reported on the modified accrual basis of accounting. Such expenditures are recognized following, as applicable, the cost principles contained in the Uniform Guidance Texas Grant Management Standards, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: The City did not elect to use the de minimis indirect cost rate as allowed under the Uniform Guidance.
The accompanying schedule of expenditures of federal and state awards (the SEFSA) includes the federal and state award activity of the City of Port Arthur, Texas (the City) under programs of the federal and state government for the fiscal year ended September 30, 2024. The information in the SEFSA is presented in accordance with the 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) and Texas Grant Management Standards. Federal and state awards received directly from federal and state agencies, as well as federal awards passed through other government agencies, are included on the SEFSA. All federal and state grants are subject to review by the grantor agencies. Any expenditures identified by the grantor agencies as disallowed could require reimbursement to the grantor agency from the City’s general fund.
Title: Summary of Significant Accounting Policies
Accounting Policies: Expenditures reported on the SEFSA are reported on the modified accrual basis of accounting. Such expenditures are recognized following, as applicable, the cost principles contained in the Uniform Guidance Texas Grant Management Standards, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: The City did not elect to use the de minimis indirect cost rate as allowed under the Uniform Guidance.
Expenditures reported on the SEFSA are reported on the modified accrual basis of accounting. Such expenditures are recognized following, as applicable, the cost principles contained in the Uniform Guidance Texas Grant Management Standards, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
Title: Indirect Costs
Accounting Policies: Expenditures reported on the SEFSA are reported on the modified accrual basis of accounting. Such expenditures are recognized following, as applicable, the cost principles contained in the Uniform Guidance Texas Grant Management Standards, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: The City did not elect to use the de minimis indirect cost rate as allowed under the Uniform Guidance.
The City did not elect to use the de minimis indirect cost rate as allowed under the Uniform Guidance.
Title: Comingled Assistance - Federal Transit - Formula Grant
Accounting Policies: Expenditures reported on the SEFSA are reported on the modified accrual basis of accounting. Such expenditures are recognized following, as applicable, the cost principles contained in the Uniform Guidance Texas Grant Management Standards, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: The City did not elect to use the de minimis indirect cost rate as allowed under the Uniform Guidance.
The City’s Transit program is funded through a combination of federal and state awards, as well as local program income. The federal portion of the expenditures related to the program is not separately identifiable because of comingling assistance from State funding.
Title: Relationship to Federal Financial Reports
Accounting Policies: Expenditures reported on the SEFSA are reported on the modified accrual basis of accounting. Such expenditures are recognized following, as applicable, the cost principles contained in the Uniform Guidance Texas Grant Management Standards, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: The City did not elect to use the de minimis indirect cost rate as allowed under the Uniform Guidance.
Grant expenditures reports as of September 30, 2024, which have been submitted to grantor agencies will, in some cases, differ slightly from amounts disclosed herein. The reports prepared for grantor agencies are typically prepared at a later date and often reflect refined estimates of year-end accruals. The reports will agree at termination of the grant as the discrepancies noted are timing differences.
Title: Loans and Loan Guarantees
Accounting Policies: Expenditures reported on the SEFSA are reported on the modified accrual basis of accounting. Such expenditures are recognized following, as applicable, the cost principles contained in the Uniform Guidance Texas Grant Management Standards, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: The City did not elect to use the de minimis indirect cost rate as allowed under the Uniform Guidance.
The City is indebted to the Texas Water Development Board (TWDB) as a result of issuance of Combination Tax and Revenue Certificates of Obligations - Capitalization Grants for Clean Water State Revolving Loan Fund Series 2020B. The bonds were sold to provide financing for qualified water system improvements. The amounts reflected in the SEFSA represent expenditures incurred during the year ended September 30, 2024. The loan balance for Series 2020B is $54,755,000.