Title: General
Accounting Policies: The federal grant funds were accounted for in the special revenue funds, capital funds, within the general fund, and the water and sewere enterprise fund. The accounting and financial reporting treatment applied to a fund is determined by iits measurement focus. The governmental fund types are accounted for using a current financial resource measurement focus. With the Governmental fund type measurement focus, only current assets and current liabilities are included in the balnce sheet. Operating statment of these funds presents increases (i.e, revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. The modified accrual basis of accounting is used for the Governmental fund types. This basis of accounting recongnizes revenues in the accounting period in which they become susceptible to accrual, i.e., both measureable and available, and expenditures in the accounting period in which the fund liability is incurred if measurable, except for certain compensated absences and claims and judgements, which are recognized when the obligations are expected to be liquidated with expendable available financial resources.
De Minimis Rate Used: N
Rate Explanation: The city did not use the de minimis cost rate.
The accompanying Schedule of Expenditures of Federal Awards presents the activity of all federal award program of the City of Los Fresnos, Texas, for the year ended September 30, 2024. The reporting entity consists of the primary government, organizations for which the primary government is financially accountable, and other organizations for which the primary government is not accountable, but for which the neture and significance of their relationship with the primary government are such that exclusion would cause the reporting entity's financial statements to be misleading or incomplete. Financial accountability exists if a primary government appoints a voting of an organization's governing Board and its either abble to impose its will on that organization or there is a potential for the organization to provide specific financial benefits to, or impose specific burdens on, the primary government. A primary government may also be financially accountable for governmental organizations with a separately elected governing Board, a governing Board appointed by another government, or a jointly appointed Board that is fiscally dependent on the primary government. In accordance with Governmental Accounting Standards Board requirements, the City has reviewed other entities and activates for possible inclusion in the reporting entity and determined that there are non; however, federal financial assistance passed through other governmental agencies is included on the schedule.
Title: Measurement Focus and Basis of Accounting
Accounting Policies: The federal grant funds were accounted for in the special revenue funds, capital funds, within the general fund, and the water and sewere enterprise fund. The accounting and financial reporting treatment applied to a fund is determined by iits measurement focus. The governmental fund types are accounted for using a current financial resource measurement focus. With the Governmental fund type measurement focus, only current assets and current liabilities are included in the balnce sheet. Operating statment of these funds presents increases (i.e, revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. The modified accrual basis of accounting is used for the Governmental fund types. This basis of accounting recongnizes revenues in the accounting period in which they become susceptible to accrual, i.e., both measureable and available, and expenditures in the accounting period in which the fund liability is incurred if measurable, except for certain compensated absences and claims and judgements, which are recognized when the obligations are expected to be liquidated with expendable available financial resources.
De Minimis Rate Used: N
Rate Explanation: The city did not use the de minimis cost rate.
The federal grant funds were accounted for in the special revenue funds, capital funds, within the general fund, and the water and sewere enterprise fund. The accounting and financial reporting treatment applied to a fund is determined by iits measurement focus. The governmental fund types are accounted for using a current financial resource measurement focus. With the Governmental fund type measurement focus, only current assets and current liabilities are included in the balnce sheet. Operating statment of these funds presents increases (i.e, revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. The modified accrual basis of accounting is used for the Governmental fund types. This basis of accounting recongnizes revenues in the accounting period in which they become susceptible to accrual, i.e., both measureable and available, and expenditures in the accounting period in which the fund liability is incurred if measurable, except for certain compensated absences and claims and judgements, which are recognized when the obligations are expected to be liquidated with expendable available financial resources.
Title: Sub-Recipients
Accounting Policies: The federal grant funds were accounted for in the special revenue funds, capital funds, within the general fund, and the water and sewere enterprise fund. The accounting and financial reporting treatment applied to a fund is determined by iits measurement focus. The governmental fund types are accounted for using a current financial resource measurement focus. With the Governmental fund type measurement focus, only current assets and current liabilities are included in the balnce sheet. Operating statment of these funds presents increases (i.e, revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. The modified accrual basis of accounting is used for the Governmental fund types. This basis of accounting recongnizes revenues in the accounting period in which they become susceptible to accrual, i.e., both measureable and available, and expenditures in the accounting period in which the fund liability is incurred if measurable, except for certain compensated absences and claims and judgements, which are recognized when the obligations are expected to be liquidated with expendable available financial resources.
De Minimis Rate Used: N
Rate Explanation: The city did not use the de minimis cost rate.
During the year ended September 30, 2024, the City had no sub-recipients.
Title: Federal Loans nd Loans Guarantees
Accounting Policies: The federal grant funds were accounted for in the special revenue funds, capital funds, within the general fund, and the water and sewere enterprise fund. The accounting and financial reporting treatment applied to a fund is determined by iits measurement focus. The governmental fund types are accounted for using a current financial resource measurement focus. With the Governmental fund type measurement focus, only current assets and current liabilities are included in the balnce sheet. Operating statment of these funds presents increases (i.e, revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. The modified accrual basis of accounting is used for the Governmental fund types. This basis of accounting recongnizes revenues in the accounting period in which they become susceptible to accrual, i.e., both measureable and available, and expenditures in the accounting period in which the fund liability is incurred if measurable, except for certain compensated absences and claims and judgements, which are recognized when the obligations are expected to be liquidated with expendable available financial resources.
De Minimis Rate Used: N
Rate Explanation: The city did not use the de minimis cost rate.
During the year ended September 30, 2024, the City had no outstanding federal loans payable or loan guaratnees.
Title: Federally Funded Insurance
Accounting Policies: The federal grant funds were accounted for in the special revenue funds, capital funds, within the general fund, and the water and sewere enterprise fund. The accounting and financial reporting treatment applied to a fund is determined by iits measurement focus. The governmental fund types are accounted for using a current financial resource measurement focus. With the Governmental fund type measurement focus, only current assets and current liabilities are included in the balnce sheet. Operating statment of these funds presents increases (i.e, revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. The modified accrual basis of accounting is used for the Governmental fund types. This basis of accounting recongnizes revenues in the accounting period in which they become susceptible to accrual, i.e., both measureable and available, and expenditures in the accounting period in which the fund liability is incurred if measurable, except for certain compensated absences and claims and judgements, which are recognized when the obligations are expected to be liquidated with expendable available financial resources.
De Minimis Rate Used: N
Rate Explanation: The city did not use the de minimis cost rate.
During the year ended September 30, 2024, the City had no federally funded insurance.
Title: Noncash Awards
Accounting Policies: The federal grant funds were accounted for in the special revenue funds, capital funds, within the general fund, and the water and sewere enterprise fund. The accounting and financial reporting treatment applied to a fund is determined by iits measurement focus. The governmental fund types are accounted for using a current financial resource measurement focus. With the Governmental fund type measurement focus, only current assets and current liabilities are included in the balnce sheet. Operating statment of these funds presents increases (i.e, revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. The modified accrual basis of accounting is used for the Governmental fund types. This basis of accounting recongnizes revenues in the accounting period in which they become susceptible to accrual, i.e., both measureable and available, and expenditures in the accounting period in which the fund liability is incurred if measurable, except for certain compensated absences and claims and judgements, which are recognized when the obligations are expected to be liquidated with expendable available financial resources.
De Minimis Rate Used: N
Rate Explanation: The city did not use the de minimis cost rate.
During the year ended September 30, 2024, the city did not receive any non-cash federal awards.
Title: Indirect Cost Rate
Accounting Policies: The federal grant funds were accounted for in the special revenue funds, capital funds, within the general fund, and the water and sewere enterprise fund. The accounting and financial reporting treatment applied to a fund is determined by iits measurement focus. The governmental fund types are accounted for using a current financial resource measurement focus. With the Governmental fund type measurement focus, only current assets and current liabilities are included in the balnce sheet. Operating statment of these funds presents increases (i.e, revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. The modified accrual basis of accounting is used for the Governmental fund types. This basis of accounting recongnizes revenues in the accounting period in which they become susceptible to accrual, i.e., both measureable and available, and expenditures in the accounting period in which the fund liability is incurred if measurable, except for certain compensated absences and claims and judgements, which are recognized when the obligations are expected to be liquidated with expendable available financial resources.
De Minimis Rate Used: N
Rate Explanation: The city did not use the de minimis cost rate.
The City does not utilize the de minimus 10% indirect cost rate. Indirect cost, where applicable, are negotiated with the agency providing the grant award to the City.