Notes to SEFA
The District incurred expenditures totaling $1,500,170, which are recognized as expenditures in the prior year financial statements. Most of the expenditures totaling $1,405,482 is for the reimbursement of transit administration, operations, maintenance, and planning expenditures and Lake Jackson Maintenance and Operations Facility construction expenditures paid by Gulf Coast Center during the transition period. Additionally, another $94,688 was incurred and payable to a vendor for oversight activities of the Lake Jackson Maintenance and Operations Facility construction. Due to deobligation of the transit grants by Gulf Coast Center, the Center was not able to seek reimbursement for these expenditures from grantors and now the District is responsible for payment of the expenditures. The District is developing repayment plans and evaluating funding sources to reimburse Gulf Coast Center and pay the District's vendor, which may include a combination of federal/state grants and local monies. These expenditures are not recognized on the Schedule of Expenditures of Federal and State Awards in the current fiscal year but may be in future years.
State awards are subject to the State of Texas Single Audit Circular. Such guidelines are consistent with those required under the Single Audit Act of 1996, the Uniform Guidance, and Government Auditing Standards, issued by the Comptroller General of the United States.