Notes to SEFA
The accompanying Schedule of Expenditures of Federal Awards includes the Town's federal grant activity for the year ended June 30, 2025. The information in this schedule 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 Schedule presents only a selected portion of the operations of the Town, it is not intended to and does not present the financial position, changes in net position, or cash flows of the Town.
The program titles and federal assistance numbers were obtained from the federal or passthrough grantor or the 2025 Catalog of Federal Domestic Assistance.
The Town of Sahuarita, Arizona completed a $4,655,256 building project (SAMTEC) in fiscal year 2021 for which $3 million was funded through an Economic Development Agency (EDA) grant. The Town has since entered into building lease agreements that require the Town to provide funding for tenant improvements (TIs). The Town's leasing fees and charges are set at market levels (a requirement under the EDA grant) and account for and are adjusted dependent upon the amount of TI allowance provided. Lease revenues qualify as program income under the EDA grant. In fiscal year 2025, the Town paid $868,202 for TIs using local funds. A transfer was recorded in the GARS-SAMTEC fund to account for the General Fund advance which was used to pay for the TIs. The following page includes a summary of the balance of the advance, repayment on the advance, program income received, and allowable costs charged against the program income received: General Fund Advance-Beginning Balance $1,185,824 Additional General Fund Contribution 868,202 General Fund Advance-Ending Balance 2,054,026 Sources Program Income Carryover-Beginning Balance $ 119,655 Current Year Program Income Received 362,899 Uses Current Year Repayment of Advance Economic Development Activities Administration, Operation, Maintenance, and Repair Costs (68,138) Total Program Income Recognized as Current Year Federal (68,138) Program Income Carryover $ 414,416