The accompanying schedule of expenditures of federal awards (SEFA) includes the federal award activity of the City Public Service of San Antonio, Texas (“CPS Energy”) under programs of the federal government for the year ended January 31, 2025 and is presented on the accrual basis of accounting. The information in this SEFA 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). Because the SEFA presents only a selected portion of the operations of CPS Energy, it is not intended to and does not present the net position, changes in net position, or cash flows of CPS Energy.
Expenditures reported on the SEFA are reported once the expenditures are incurred. 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 amount shown as current year expenditures represent only the federal award portion of the program costs. Entire program costs, including CPS Energy’s matching share, may be more than shown. CPS Energy has not elected to use the ten-percent de minimis indirect cost rate allowed by the Uniform Guidance. CPS Energy did not pass-through any federal awards to subrecipients during the year ended January 31, 2025.
In September 2024, CPS Energy entered into a cost reimbursement grant agreement with the U.S. Department of Energy Grid Deployment Office for a Grid Resilience and Innovation Partnership (GRIP) grant. The total program is budgeted for $66,683,233, with $30,227,510 of federal funding, and $36,455,723 of cost share funds. As of January 31, 2025, CPS Energy recognized $1,768,137 in federal grant expenditures, and $2,132,452 in CPS Energy cost share expenditures associated with this project.
CPS Energy participates in federal grant programs, which are governed by various rules and regulations of the grantor agencies. Costs allocated to the respective federal grant programs are subject to audit and adjustment by the grantor agencies; therefore, to the extent that CPS Energy has not complied with the rules and regulations governing the grants, the collectability of any related receivable at January 31, 2024, may be impaired. In the opinion of management, CPS Energy has complied with the rules and regulations governing the respective grants.