The financial reporting entity, as defined by the Governmental Accounting Standard Board (“GASB”), consists of the primary government, which is the City of Fresno, California (the “City”), organizations for which the primary government is financially accountable, and other organizations for which the nature 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. The City’s reporting entity is defined further in Note 1a to the City’s basic financial statements.
Funds received under the various grant programs have been recorded within the general fund, special revenue funds and proprietary funds of the City. The City utilizes the modified accrual method of accounting for the General Fund and special revenue funds and accrual method of accounting for proprietary funds. The accompanying Schedule of Expenditures of Federal Awards (the “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 (the “Uniform Guidance”). Therefore, some amounts presented in the Schedule may differ from amounts presented in, or used in, the preparation of the City’s basic financial statements.
The accompanying Schedule presents the activity of all federal financial assistance programs of the City. Federal financial assistance received directly from federal agencies as well as federal financial assistance passed through the State of California and Fresno Council of Governments, is included in the Schedule. The Schedule was prepared from only the accounts of various grant programs and, therefore, does not present the financial position, change in fund balance, or results of operations of the City.
The Assistance Listing Numbers (ALNs) included in the accompanying Schedule were determined based on the federal program name, review of grant contract information, and the U.S. General Services Administration’s SAM.gov website.
The City has not elected to use the de minimis indirect rate as allowed under the Uniform Guidance (10 percent of modified total direct costs for awards issued prior to October 1, 2024 and 15 percent for awards issued or amended on or after October 1, 2024).
Beginning in fiscal year 2007, the City received Federal cross-cut revolving grant funds from the State in the form of loans from the U.S. Environmental Protection Agency, Office of Water, passed through the California State Water Resources Control Board and the California Department of Public Health, under Capitalization Grants for Clean Water State Revolving Funds (Assistance Listing Number 66.458) and Capitalization Grants for Safe Drinking Water State Revolving Funds (Assistance Listing Number 66.468). The purpose of the grants/loans is to assist in financing the construction of projects that will enable the City to comply with statutory clean and safe drinking standards. The City received funds under ten grants/loans. The terms of the grants/loans and the outstanding balances as of June 30, 2025, are as follows: These loans are not considered to have continuing compliance requirements under Title 2 CFR Part 200, and, therefore, are only reported on the Schedule in the year in which funds are expended and drawn. The City expended $0 in federal funds under the loans during fiscal year ended June 30, 2025.
The amount reported on the Schedule for expenditures related to the Economic Adjustment Assistance Revolving Loan Fund (RLF) Grant ALN 11.307 is calculated using various criteria as defined by Title 2 CFR Part 200. The calculation for the year ended June 30, 2025, is as follows:
The amount reported on the Schedule for expenditures related to the Economic Adjustment Assistance CARES Revolving Loan Fund (RLF) Grant ALN 11.307 is calculated using various criteria as defined by Title 2 CFR Part 200. The calculation for the year ended June 30, 2025, is as follows:
The Schedule includes the following expenditures that were incurred in the prior year: The City incurred pre-award costs of $3,888,289 for the year ended June 30, 2024 under the Airport Improvement Program under Assistance Listing Number (ALN) 20.106. This funding amount was approved in fiscal year 2024. These expenditures of $3,888,289 are included on the SEFA as part of the ALN 20.106 expenditures for the year ended June 30, 2025. The City reduced prior year expenditures totaling $45,401 for the year ended June 30, 2024 under the Highway Planning and Construction Cluster of programs under ALN 20.205. These expenditures were deemed to be ineligible for Federal share match under the current finance letters of the grant; however, the City will continue to monitor any future modifications to finance letters impacting this funding. These reductions are included on the SEFA as part of ALN 20.205. The City incurred costs totaling $4,324 for the year ended June 30, 2024 under PS24014 for ALN 20.600. This funding amount was approved in fiscal year 2024. These expenditures are included on the SEFA as part of the ALN 20.600 expenditures for the year ended June 30, 2025.
The following is a list of nonfederal (state and local) award expenditures that are required to be listed separately by the Grantor: