Notes to SEFA
The Schedule of Expenditures of Federal Awards is prepared using the accrual basis of accounting. The information in the Schedule is presented in accordance with the Uniform Guidance. Therefore, some amounts presented in the Schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements.
Town of Horizon City, Texas does not currently have a negotiated indirect cost reimbursement rate approved by a Federal Cognizant Agency; therefore, the Town has elected to use the de minimis rate of 10% of modified total direct cost for federal awards issued prior to October 1, 2024, and the de minimis rate of 15% of modified total direct cost for federal awards issued on or after October 1, 2024, as an indirect cost allocation factor, as allowed under 2 CFR §200.414 when allowable by federal grantors.
There were no sub-recipients of the Federal Awards received by the Town of Horizon City, Texas for the year ended September 30, 2025.
Expenditures of the federal awards received under the Highway Planning and Construction Program are composed entirely of in-kind awards provided by the United States Department of Transportation and the Texas Department of Transportation, the pass-through agency. Federal expenditures for these awards are managed by the pass-through agency and are used in the design, construction and supervision of improvements of major roads within the Town’s limits. Total federal awards expended by the pass-through agency from inception of the projects through September 30, 2025, amount to $6,358,005 and have been recognized as in-kind federal expenditures in the current fiscal year. The Town is responsible for making matching payments to the pass-through agency for design, engineering, construction, purchase of land, utilities relocation and supervision at various phases of the project. Total matching payments provided by the Town to the pass-through agency from inception of the projects through September 30, 2025, amount to $1,541,896. The Town’s policy is to recognize the federal funds used for these projects as in-kind expenditure on the basis of historical cost, as reported by the pass-through agency to the Town.