Accounting Policies: NOTE 1 GENERAL The accompanying Schedule of Expenditures of Federal and State Awards (the Schedule) presents the activity of all federal and state Awards programs of the City of Amarillo, Texas, (the City) for the year ended September 30, 2022. The City's reporting entity is defined in the Summary of Significant Accounting Policies to the City's financial statements. Federal and state financial assistance received directly from federal and state agencies, as well as assistance passed through other government agencies, is included on the Schedule. The City did not elect to use the 10% de minimis indirect cost rate. NOTE 2 - BASIS OF ACCOUNTING The accompanying Schedule is presented using the modified accrual basis of accounting, which is described in the Summary of Significant Accounting Policies to the City's financial statements. NOTE 3 - RELATIONSHIP TO FEDERAL AND STATE FINANCIAL REPORTS Amounts reported in the accompanying Schedule agree with the amounts reported in the related federal and state financial reports considering timing differences of cash receipts. NOTE 4 - FEDERAL AND STATE PROGRAMS The City participates in numerous federal and state grant programs, which are governed by various rules and regulations of the grantor agencies. Costs charged to the respective grant programs are subject to audit and adjustment by the grantor agencies; therefore, to the extent that the City has not complied with the rules and regulations governing the grants, refunds of any money received may be required. NOTE 5 - NONCASH GRANTS The City received vaccines from the Texas Department of State Health Services, Immunization Division (ALN Number 93.268), for distribution to "Texas Health Step" providers. It continues to receive vaccines from the Division for usage in its own public health facilities. As the City does not purchase these vaccines, the value of the vaccines received by the City during the fiscal year ended September 30, 2022, has been computed to be $933,781 based on information supplied by the City Department of Public Health. This amount is included in the accompanying Schedule of Expenditures of Federal and State Awards. NOTE 6 SUBRECIPIENTS Of the federal expenditures presented in the Schedule, the City provided federal awards to subrecipients as follows: Program Title Community Development Block Grants Federal ALN Number 14.218 Amounts Provided to Subrecipients $410,734 Program Title Home Investment Partnership Federal ALN Number 14.239 Amounts Provided to Subrecipients $64,343 Program Title Edward Byrne Memorial Justice Assistance Grant Federal ALN Number 16.738 Amounts Provided to Subrecipients $59,880 Total $534,957 NOTE 7 - OUTSTANDING LOAN BALANCES - The City has an outstanding loan payable under the Drinking Water State Revolving Loan Fund from the Texas Water Development Board (TWDB), as a pass-through agency for the Environmental Protection Agency (ALN 66.458). There are no longer continuing compliance requirements for the Series 2009C loan, while the Series 2015 and Series 2020 are currently subject to single audit requirements. As of September 30, 2022, the outstanding loan balances were: TWDB Series 2009C$7,240,000 TWDB Series 2009C due within one year$905,000 Series 2009C Total $8,145,000 TWDB Series 2015 $10,580,000 TWDB Series 2015 due within one year $825,000 Series 2015 Total $11,405,000 TWDB Series 2020 $24,225,000 TWDB Series 2020 due within one year $1,425,000 Series 2020 Total $25,650,000 NOTE 8 - REAL ESTATE ASSESSMENT CENTER (REAC) REPORT - For purposes of the REAC Reporting Submission, the CARES Act grants, Mainstream CARES Act ALN# 14.879, Housing Choice Vouchers CARES Act ALN #14.871, and Emergency Housing Vouchers ALN #14.871 are reported as 14.MSC, 14.HCC and 14.EHV, respectively.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.