Notes to SEFA
The accompanying schedule of expenditures of federal and state awards presents expenditures for all federal and state assistance awards that were in effect for the year ended August 31, 2025 for Southwest Texas Regional Advisory Council (“STRAC”). STRAC’s reporting entity is described in Note 1 of the basic financial statements.
The accompanying schedule of expenditures of federal and state awards includes the federal and state grant activity of STRAC and is presented on the accrual basis of accounting. 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, and the Texas Grant Management Standards issued by the Texas Comptroller of Public Accounts. Because the schedule presents only a selected portion of the operations of STRAC, it is not intended to and does not present the financial position, changes in net assets, or cash flows of STRAC.
Expenditures reported on the schedule of expenditures of federal and state awards are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, Cost Principles for Non-Profit Organizations and the Texas Grant Management Standards, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
STRAC carries insurance specifically to cover equipment purchased with federal and state funds. There were no loans or loan guarantees outstanding at year end. STRAC has elected not to use the 15 percent de minimis indirect cost rate. STRAC disbursed $5,165,848 in federal and state awards to subrecipients for the year ended August 31, 2025.