Notes to SEFA
The accompanying schedule of expenditures of federal and state awards include the federal and state grant activity of Workforce Solutions – Capital Area Workforce Board (the “Organization”) and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of Title 2, Chapter II, Part 200, et al Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (the Uniform Guidance) and the Texas Grants Management Standards (TGMS). Because the schedule only presents a selected portion of the operations of the Organization, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Organization.
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, wherein certain types of expenditures are not allowable or are limited to reimbursement.
The Organization participates in a number of federally assisted programs. These programs are audited in accordance with Government Auditing Standards and the Uniform Guidance, if applicable, in accordance with the required levels of federal financial assistance, and TxGMS. Audits of prior years have not resulted in any significant disallowed costs; however, grantor agencies may provide for further examinations. Based on prior experience, management believes that further examinations would not result in any significant disallowed costs. For a portion of the expenditures in the federal programs, Workforce Solutions – Capital Area Workforce Board contracts with other entities to perform specific services set forth in the grant agreement. The Organization disburses grant funds to the entities based on invoices and reports received from each contractor. These agencies are required to submit an annual independent audit report to Workforce Solutions – Capital Area Workforce Board. Workforce Solutions – Capital Area Workforce Board also performs financial and program monitoring on the contractors. If such audits or monitoring activities disclose expenditures not in accordance with terms on the local contract agreement, the Organization’s grantor agency could disallow the costs and require reimbursement from the Organization’s nonfederal funds. Workforce Solutions – Capital Area Workforce Board generally has the right of recovery from the contractors. Based on prior experience, management believes that the Organization will not incur significant losses from possible grant disallowance.
Accounts reported in the accompanying schedules may not agree with the amounts reported in the related financial reports filed with the grantor agencies for the month ended September 30, 2025 because of accruals made in the schedules for financial statement reporting purposes. These accruals were included in future reports filed with the agencies.
Workforce Solutions – Capital Area Workforce Board has elected not to use the 15 percent de minimis indirect cost rate as allowed under the Uniform Guidance.