The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of the City of Bonham, Texas (the City) under programs of the federal government for the fiscal year ended September 30, 2025. 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) and the State of Texas Uniform Grant Management Standards. Because the Schedule presents only a selected portion of the operations of the City, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the City.
Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Pass-through entity identifying numbers are presented where available.
The City has elected not to use the 10-percent de minimis cost rate allowed under the Uniform Guidance.
The amounts shown as current year expenses represent only the federal grant portion of the program costs. Entire program costs, including the City's portion, may be more than shown.
Federal awards included proceeds of Certificates of Obligation from the U.S. Environmental Protection Agency passed through the Texas Water Development Board (Assistance Listing #'s 66.468 and 66.458). The Certificates of Obligation were originally issued during the fiscal year of 2019 for $4,810,000 and $9,830,000. The funds drawn from during 2019-20. At September 30, 2025, the total outstanding balance was $12,155,000.
Expenditures included in the September 30, 2025, Schedule of Expenditures of Federal Awards incurred in prior periods are as follows: Community Development Block Grant / State's program, AL #14.228, actual expenditure year September 30, 2024 in the amount of $30,050; COVID-19 - Airport Coronavirus Relief Grant, AL #20.106, expenditures for the year ending September 20, 2022 totaling $3,661, expenditures for the year ending September 30, 2023 totaling $5,007, and expenditures for the year ending September 30, 2024 totaling $4,332; COVID-19 - Airport Rescue Plan Act Grant, AL #20.106, expenditures for the year ending September 30, 2024 totaling $10,000; Total Prior Period Expenditures Charged to 2025 SEFA of $53,050. Expenditures for the Community Development Block Grant (AL #14.228) were inadvertently omitted by the City and are immaterial to the schedule for restatement. COVID-19 Airport Grants (AL #20.106) covered multiple fiscal years and the determination of which expenditures would be claimed was not required to be made and submitted for reimbursement until fiscal year 2025. Therefore, it is appropriate to record in the year submitted for reimbursement.