Notes to SEFA
The accompanying schedules of expenditures of federal and state awards (Schedules) include the activity of all applicable federal and state award programs of the reporting entity. The Council’s reporting entity is defined in Note 1 of the basic financial statements. Federal and state awards received directly from federal and state agencies, as well as awards passed through other government agencies, are included on the Schedules. The information in these schedules is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), and the Texas Grants Management Standards (TxGMS). Because the Schedules present only a selected portion of the operations of the Council, they are not intended to and do not present the financial position or changes in net position of the Council.
Federal and state award expenditures reported on the Schedules are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance and TxGMS, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedules represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. The modified accrual basis of accounting is described in Note 1 of the basic financial statements.
Grant expenditure reports as of December 31, 2025, which have been submitted to grantor agencies will, in some cases, differ slightly from amounts disclosed herein. The reports prepared for grantor agencies are often prepared at different dates and sometimes reflect refined estimates of year-end accruals. The reports will agree at termination of the grant, as the discrepancies noted are timing differences.
The Council has not elected to use the 15% de minimis indirect cost rate as allowed in the Uniform Guidance, Section 414. Instead, the Council uses indirect and fringe benefit rates that are negotiated with the U.S. Economic Development Administration, which is the Council’s designated federal cognizant agency. The Council uses a fixed-rate plus carry-forward provision.
During the year ended December 31, 2025, Council provided federal and state awards to subrecipients.
The Council did not have any federal loan programs during the year ended December 31, 2025.
Management has evaluated subsequent events through the date on which the report on the Schedules was available to be issued. No items of significance were determined.