Notes to SEFA
Basis of presentation – The schedule of expenditures of federal awards (the schedule) is prepared on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of Title 2 U. S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Federal expenses include allowable expenses funded by federal grants. Allowable costs are subject to the cost principles of the Uniform Guidance guidelines and include both costs that are capitalized and costs that are recognized as expenses in the Alley’s financial statements in conformity with generally accepted accounting principles. The Alley does not use the 10% de minimis rate. The Alley does not have subrecipients. Because the schedule presents only a selected portion of the operations of the Alley it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Alley.
The Texas Division of Emergency Management (TDEM) awarded Federal Emergency Management Agency public assistance grants to the Alley for reimbursement of expenditures related to immediate clean-up, repairs, and restorations that were a result of Hurricane Harvey in August 2017. The Alley has received an award of $14,245,815 from TDEM and received to date $13,773,221 in hurricane recovery expenses. Expenditures related to Hurricane Harvey were incurred and reported in the Alley’s financial statements as capital assets or expenses in the following periods: June 30, 2018-$8,347,443, June 30, 2019-$681,434, June 30, 2020-$1,975,112, June 30, 2021-$2,769,232, Total expenditures-$13,773,221. In addition, the grant provided funding for construction-related costs to mitigate future flood issues.