The accompanying Schedule of Expenditures of Federal and State Awards (the “Schedule”) presents the activity of all applicable federal and state awards of the City of Fort Worth, Texas (the “City”) for the year ended September 30, 2025. For the purposes of the Schedule, federal and state awards include all grants, contracts and similar agreements entered into directly between the City and agencies and departments of the federal and State of Texas governments and all subawards to the City pursuant to federal and state grants, contracts and similar agreements. Major programs are identified by the independent auditor in accordance with the provisions of 2 CFR 200 and the Texas Grant Management Standards (“TxGMS”).
Expenditures for direct costs and employee benefits are recognized as incurred using the modified accrual basis of accounting (accrual basis for proprietary funds) to the extent grants are approved and applicable government cost principles specified by each grant, contract, and agreement. Such expenditures are recognized following the cost principles contained in 2 CFR 200, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Pass-through entity identifying numbers are presented where available. Effective October 1, 2024, the de minimis indirect cost rate under 2 CFR 200 increased to 15% for entities that have never had an approved indirect cost rate. The City recovers indirect cost based on the rate established in the City’s indirect cost plan or the rate expressly allowed by each award. Indirect cost recovery can be waived with City Council approval. Additionally, amounts reported as expenditures in the Schedule may not agree with the amounts in the related financial reports filed with the grantor agencies because of accruals that would not be included until the next report filed with the agency.
The City participates in several federal and state grant programs, which are governed by various rules and regulations of the grantor agencies. Costs charged to the respective grant programs are subject to audit and adjustment by the grantor agencies. Therefore, to the extent that the City has not complied with the rules and regulations governing the grants, refunds of any money received may be required, and the collectability of any related receivable at September 30, 2025 may be impaired. In the opinion of management, there are no significant contingent liabilities relating to compliance with rules and regulations governing the grants.
The City has outstanding non-federal loans payable under the Clean Water State Revolving Loan Fund from the Texas Water Development Board (TWDB), as a pass-through agency for the Environmental Protection Agency (Assistance Listing Number 66.458). As of September 30, 2025 the outstanding loan balances were: TWDB Series 205 $18,555,000; TWDB Series 2015- Due within One Year $1,920,000; TWDB Series 2015 Total $20,475,000; TWDB Series 2017 $11,760,000; TWDB Series 2017- Due within One Year $480,000; TWDB Series 2017 Total $12,240,000; TWDB Series 2020 $44,035,000; TWDB Series 2020- Due within One Year $3,115,000; TWDB Series 2020 Total $47,150,000. The City has an outstanding non-federal loan payable under the Drinking Water State Revolving Loan Fund from the Texas Water Development Board (TWDB), as a pass-through agency for the Environmental Protection Agency (Assistance Listing Number 66.468). As of September 30, 2025, the outstanding loan balance was: $TWDB Series 2009 ARPA $3,140,000; TWDB Series 2009 ARPA- Due within One Year $815,000; TWDB Series 2009 ARPA Total $3,995,000. No additional expenditures under these programs were incurred for this reporting period. Loans under these programs have no continuing compliance requirements other than continued loan payments, therefore, the outstanding loan balances of such loans have not been included in the Schedule and major program determination.
Certain federal financial awards programs involve other-than-cash awards. Such items were immaterial for the year ended September 30, 2025.