ESBD_369211_1722980577706_Attachment A.pdf

ALAMO AREA

COUNCIL OF GOVERNMENTS

SAN ANTONIO, TEXAS

ANNUAL COMPREHENSIVE FINANCIAL REPORT

FOR THE YEAR ENDED DECEMBER 31, 2023

Prepared by:

Julio Elizondo, MSF, CFO Jhoan Torres, Controller

ALAMO AREA COUNCIL OF GOVERNMENTS

Annual Comprehensive Financial Report For the Year Ended December 31, 2023

TABLE OF CONTENTS

INTRODUCTORY SECTION

Letter of Transmittal . . . . . . . . . . . . . . . . . . . . . . . . i

Organizational Chart . . . . . . . . . . . . . . . . . . . . . . . . xxxv

List of Principal Officials . . . . . . . . . . . . . . . . . . . . . . xxxvi

FINANCIAL SECTION

Independent Auditor’s Report

Management’s Discussion and Analysis (Unaudited)

Basic Financial Statements:

Government-Wide Financial Statements:

Statement of Net Position

Statement of Activities

Fund Financial Statements:

Balance Sheet – Governmental Funds

Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position

Statement of Revenues, Expenditures, and Changes in Fund Balances – Governmental Funds

Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Net Position

Notes to the Financial Statements

Page Number

For the Year Ended December 31, 2023

TABLE OF CONTENTS

Page Number

Required Supplementary Information (Unaudited):

Schedule of Changes in Net Pension Liability and Related Ratios

Schedule of Employer Contributions – Texas County and District Retirement System

Notes to Schedule of Employer Contributions – Texas County and District Retirement System

Supplementary Information:

Combining Fund Schedules:

Grants Funds

Combining Schedule of Grants Fund Balance Sheet

Combining Schedule of Grants Fund of Revenues, Expenditures, and Changes in Fund Balances

Indirect Costs and Employee Benefit Schedules:

Schedule of Indirect Costs

Schedule of Employee Benefits (Fringe and Release Time)

Other Information:

Intellectual and Developmental Disabilities Services Schedules (Unaudited):

Reconciliation of Total Expenditures to Fourth Quarter Financial Report

Reconciliation of Total Revenue to Fourth Quarter Financial Report

Reconciliation of Total Revenue to First Quarter FY 22 Financial Report

Schedule of Revenues and Expenditures by Source of Funds

For the Year Ended December 31, 2023

TABLE OF CONTENTS

Page Table Number

Schedule of Indirect Costs

Schedule of Insurance in Effect

Schedule of Professional and Consulting Services

Schedule of Legal Services

Schedule of Lease and Rental Commitments

Schedule of Space Occupied in a State-Owned Facility

Schedule of Bonded Employees

STATISTICAL SECTION

Financial Trends:

Net Position by Component 1 84

Changes in Net Position 2 86

Fund Balances of Governmental Funds 3 88

Changes in Fund Balances of Governmental Funds 4 90

Local Government Annual Membership Dues by Entity 5 92

Revenue Capacity:

Principal Sources of Revenues 6 94

Demographic and Economic Information:

Demographic and Economic Statistics 7 96

Principal Employers 8 99

Operating Information:

Operating Indicators by Function 9 100

For the Year Ended December 31, 2023

TABLE OF CONTENTS

Full-Time Equivalent Employees 10 102

Capital Asset Statistics by Function 11 104

SINGLE AUDIT SECTION

Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of

Financial Statements Performed in Accordance with Government Auditing Standards – Independent Auditor’s Report

Report on Compliance for Each Major Federal and State Program and on Internal Control over Compliance Independent Auditor’s Report

Schedule of Expenditures of Federal and State Awards

Notes to the Schedule of Expenditures of Federal and State Awards

Schedule of Findings and Questioned Costs

Summary Schedule of Prior Audit Findings

Page Number

THIS PAGE LEFT BLANK INTENTIONALLY

INTRODUCTORY SECTION

Lyle Hufstetler Natural

Resources Project

Administrator

Steven Smeltzer Natural

Resources Environmental

Project Manager

Board of Directors

Clifford Herberg Executive Director

Jacob Ulczynski Sr. Director of

Human Services & Agency

Coordination

Norma Perez Performance

Improvements

Accreditation Administrator

Will McKnight Director of

Aging & Military Affairs

Julie Gudgel Veterans

Affairs Manager

Miguel Juarez Aging Manager

Programs

Virginia Charles

Director of

IDDS

Corina Arauza

IDDS

Community Engagement

Manager

Arnold Ferguson

IDDS

Community

Service Manager

Jennifer Caruso

IDDS Waiver Services Manager

Nicole Riendeau

Psychological Examiner

Supervisor

Bryn Herrera Agency

Management

QA , IT &

Privacy Officer

James Almaguer

Agency Management Human Rights

Officer

Julio Elizondo CFO and

Senior Director

Jaye Wells Internal Auditor

Jhoan Torres Controller

Marcela Medina

Public Safety Manager &

Financial Analyst

Justin Monarez Homeland

Security/Justice Planning

Coordinator

Mike Ritchey Law

Enforcement Academy Manager

Pat Michalec Law

Enforcement Academy training

Coordinator

Deedra Johnson Sr. Director

Administration & Program

Services

Lucinda Elizondo

Director of Human

Resources

Sean Scott Director of

Transportation

Duane Evans Asst. Director of Transportation

Robert Duke Operations Manager

Alicia Penalver Weatherizatio n Assistance

Program Manager

Andre Furman Quality

Compliance Supervisor

Miguel Segura Director of

Public Affairs & Regional

Development

Claudia Mora Regional Services

Administrator

Shauna Duff Environmental Conservation

Program Specialist

Crystal Campos- Rosales External Affairs

Coordinator

Frank Rivera Multimedia

Specialist

Outreach Specialists:

Doris Martinez Joseph Briones

Emily Ortiz

Debbie Ugarte Procurement

& Facilities Manager

Vacant Position Facilities

Coordinator

Organizational Chart as of October 2023

OFFICERS OF THE BOARD OF

DIRECTORS 2023

CHAIR

James Teal

County Judge McMullen County

VICE CHAIR

Rob Kelly

County Judge Kerr County

ADMINISTRATIVE STAFF

As of 01/01/24

Executive Director Clifford Herberg

Deputy Executive Director of Operations Jacob Ulczynski

Deputy Executive Director of Admin & Program Svcs Deedra Johnson

Chief Financial Officer Julio Elizondo

Government Finance Officers Association

Certificate of Achievement for Excellence in Financial Reporting

Presented to

Alamo Area Council of Governments Texas

For its Annual Comprehensive Financial Report

For the Fiscal Year Ended

December 31, 2022

Executive Director/CEO

FINANCIAL SECTION

Forvis Mazars, LLP is an independent member of Forvis Mazars Global Limited

Independent Auditor’s Report

Board of Directors Alamo Area Council of Governments San Antonio, Texas

Report on the Audit of the Financial Statements

Opinions

We have audited the financial statements of the governmental activities and each major fund of the Alamo Area Council of Governments (the Council), as of and for the year ended December 31, 2023, and the related notes to the financial statements, which collectively comprise the Council’s basic financial statements as listed in the table of contents.

In our opinion, the accompanying financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities and each major fund of the Council, as of December 31, 2023, and the respective changes in financial position for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Basis for Opinions

We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States (Government Auditing Standards). Our responsibilities under those standards are further described in the “Auditor’s Responsibilities for the Audit of the Financial Statements” section of our report. We are required to be independent of the Council and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

Emphasis of Matter

As discussed in Note 1 to the financial statements, the Council adopted new accounting guidance, Governmental Accounting Standards Board Statements No. 96, Subscription-Based Information Technology Arrangements. Our opinions are not modified with respect to this matter.

Responsibilities of Management for the Financial Statements

Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Council’s ability to continue as a going concern for 12 months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.

Board of Directors Alamo Area Council of Governments

Auditor’s Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with GAAS and Government Auditing Standards, we:

Exercise professional judgment and maintain professional skepticism throughout the audit.

Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.

Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Council’s internal control. Accordingly, no such opinion is expressed.

Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.

Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the Council’s ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit.

Required Supplementary Information

Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis and pension information be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with GAAS, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements.

We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Board of Directors

Supplementary Information

Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Council’s basic financial statements. The grants fund financial statements and schedules, the schedule of expenditures of federal awards, as required by Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, and the schedule of expenditures of state awards, as required by the Texas Grant Management Standards are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with GAAS. In our opinion, the grants fund financial statements and schedules and the schedule of expenditures of federal and state awards are fairly stated, in all material respects, in relation to the basic financial statements as a whole.

Other Information

Management is responsible for the other information included in the annual comprehensive financial report.

The other information comprises the introductory, intellectual and development disabilities services schedules and statistical section but does not include the basic financial statements and our auditor’s report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon.

In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report.

Other Reporting Required by Government Auditing Standards

In accordance with Government Auditing Standards, we have also issued our report dated July 31, 2024, on our consideration of the Council’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, and other matters.

The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the Council’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Council’s internal control over financial reporting and compliance.

San Antonio, Texas July 31, 2024

Management's Discussion and Analysis (Unaudited)

December 31, 2023

Introduction

Alamo Area Council of Governments’ (the Council) discussion and analysis offers readers of the Council’s financial statements a narrative overview and analysis of the Council’s financial activities for the fiscal year ended December 31, 2023. We encourage readers to consider the information presented here in conjunction with the additional information that we have furnished in the financial statements and notes to the financial statements.

Financial Highlights

For the fiscal year ended December 31, 2023, the Council adopted GASB Statement No.96, Subscription Based IT Arrangements (GASB 96). Fiscal year 2022 has not been restated because it is not presented in the basic financial statements.

The assets and deferred outflows of resources of the Council exceeded its liabilities and deferred inflows of resources at the close of the most recent fiscal year by $20,654,279 (net position). This reflects an increase to net position of $573,839. Of this amount, $(1,434,425) is unrestricted deficit, $8,838,330 represents the net investment in capital assets and $13,250,374 is restricted for grant programs.

As of the close of the current fiscal year, the Council’s governmental funds financial statements reported combined ending fund balances of $10,646,774. The unassigned fund balance in the General Fund that is a deficit of $(1,363,791).

Overview of Financial Statements

This discussion and analysis is intended to serve as an introduction to the Council’s basic financial statements. The Council’s basic financial statements are comprised of three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the financial statements.

Government-Wide Financial Statements. The government-wide financial statements are designed to provide readers with a broad overview of the Council’s finances in a manner similar to a private-sector business.

The statement of net position presents information on all of the Council’s assets and deferred outflows of resources and liabilities and deferred inflows of resources, with the difference between the two reported as net position. Over time, fluctuations in net position may serve as a useful indicator of whether the financial position of the Council is improving or deteriorating.

The statement of activities presents information showing how the Council’s net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows.

Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., earned but unused vacation leave).

December 31, 2023

Fund Financial Statements. A fund is a grouping of related accounts that are used to maintain control over resources that have been segregated for specific activities or objectives. The Council, like other similar governmental entities, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the Council are classified as governmental funds.

Governmental Funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of expendable resources, as well as on balances of expendable resources available at the end of the year. Such information may be useful in evaluating a government’s near-term financing requirements.

The focus of governmental funds is narrower than that of the government-wide financial statements; therefore, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the Council’s near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balance provide a reconciliation to facilitate this comparison between governmental funds and governmental activities.

The Council maintains 2 governmental funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures and changes in fund balance for each major fund: the General Fund and Grants Fund.

Notes to the Financial Statements. The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The notes to the financial statements can be found immediately following the basic financial statements in this report.

Government-Wide Overall Financial Analysis. As noted earlier, net position may serve over time as a useful indicator of a government’s financial position. The Council’s assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $20,654,279 at December 31, 2023. The table on the following page reflects the condensed statement of net position compared to prior year.

December 31, 2023

Governmental Activities 2023 2022

Assets:

Current and other assets $ 25,075,603 $ 28,254,381 Capital and lease assets 20,932,413 21,989,981

Total assets 46,008,016 50,244,362

Deferred outflows of resources 2,626,594 2,352,145

Liabilities:

Current liabilities 14,214,798 13,421,695 Noncurrent liabilities 12,634,550 12,173,412

Total liabilities 26,849,348 25,595,107

Deferred inflows of resources 1,130,983 6,920,960

Net position:

Investment in capital and lease assets 8,838,330 9,699,447 Restricted for pension - 4,921,781 Restricted for grant programs 13,250,374 8,659,925 Unrestricted (1,434,425) (3,200,713)

Total net position $ 20,654,279 $ 20,080,440

Note: Fiscal year 2022 amounts have not been restated for GASB 96 adoption.

There is a deficit in the balance of unrestricted net position in the amount of $(1,434,425) .

Analysis of the Council’s Operations. The table on the following page provides a summary of the Council’s operations for the year ended December 31, 2023, as compared to the year ended December 31, 2022. The Council’s net position increased by $573,839.

December 31, 2023

Governmental Activities 2023 2022

Revenues:

Program revenues:

Charges for services $ 784,621 $ 766,675 Operating grants and contributions 80,783,379 75,774,731 Capital grants and contributions 1,940,000 1,242,373

General revenues:

Investment earnings 233,537 159,050 Membership dues 350,074 348,832

Total revenues 84,091,611 78,291,661

Expenses:

General government 4,183,550 2,541,106 Workforce development 91,709 - Aging and veterans services 46,751,499 39,515,201 Emergency communications 1,788,360 1,899,330 Economic development 393,591 3,027,758 Environmental quality 1,489,691 121,020 Community affairs 2,179,194 2,303,830 Homeland security 1,512,235 462,324 Transportation 7,430,975 8,767,851 Criminal justice 1,492,196 1,501,935 Health and welfare 15,746,920 15,990,446

Interest on leases 15,058 23,573 Interest on SBITAs 1,799 - Interest on long-term debt 440,995 460,797

Total expenses 83,517,772 76,615,171

Change in net position 573,839 1,676,490

Net position, beginning 20,080,440 18,403,950

Net position, ending $ 20,654,279 $ 20,080,440

Note: Fiscal year 2022 amounts have not been restated for GASB 96 adoption.

December 31, 2023

The Council’s charges for services increased by $17,946, and operating grants and contributions increased by $5,008,648. The increase in charges for services was caused by an increase in program income from various grant activities. The increase in operating grants and contributions was primarily generated by increased Texas Health and Services Commission, Office of the Governor, and Texas Department of Transportation funding. Further, expenses increased by $6,902,601 from fiscal year 2022 to 2023. The main driver of this increase was caused by expenditures related to Aging and Veterans Services and Homeland Security. The Council’s revenues and expenses are driven primarily by federal and state grant funding, which varies from year to year.

Analysis of Fund Financial Statements. The General Fund beginning balance at January 1, 2023 was $421,348. The fund balance decreased by $1,666,714 for an ending balance at December 31, 2023 of $(1,245,366). The decrease is primarily due to the debt service, operating, and tenant acquisition costs associated with the Titan Complex

The Grants Fund balance at January 1, 2023 was $9,013,186. The fund balance increased by $2,878,954 for an ending balance at December 31, 2023 of $11,892,140 . The increase is primarily due to programs that have fee-for-service programs improving operational efficiencies and increased client bases.

Budgetary Highlights

The Council’s annual budget is approved by the Board of Directors (Board) at the December Annual Meeting. The Council does not have a legally adopted annual budget. Although the annual budget is reviewed and approved by the Council’s Board, it is based on a project-length basis. Accordingly, budgetary information is not presented in this report. As grant funding changes, the Council’s Board approves periodic budget modifications.

December 31, 2023

Capital Assets and Debt Administration

Alamo Area Council of Governments’ Capital Assets at Year-End. The Council’s investment in capital assets for its governmental activities as of December 31, 2023 amounts to $20,932,413 (net of accumulated depreciation). This investment includes land, equipment, furniture and fixtures, software, vehicles, lease and subscription assets, and buildings and improvements.

During 2023, the Council’s total capital assets decreased by $(1,057,568) due to the current year capital, lease and subscription asset additions, deletions, and current year depreciation/amortization.

The Council’s capital asset additions totaled $1,057,657 during 2023, primarily from the following categories and programs:

$130,248 increase in subscription based assets related to the implementation of GASB 96 $981,241 in vehicles purchased for the transportation department $76,416 for various other furniture, equipment, and lease assets

A summary of the Council’s capital assets for the current and prior year can be found below.

Additional information on the Council’s capital and lease assets can be found in Note 4 on page 29 of this report.

Governmental Activities 2023 2022

Land $ 2,957,124 $ 2,957,124 Equipment 5,870,304 5,847,277 Furniture and fixtures 247,623 206,154 Software 1,395,712 1,395,712 Vehicles 7,986,636 7,903,744 Lease assets 776,530 768,718 Buildings and improvements 16,006,932 16,002,824 Subscription assets 130,247 - Less: accumulated depreciation/amortization (14,438,695) (13,091,573)

Total capital assets, net $ 20,932,413 $ 21,989,980

Note: Fiscal year 2022 amounts have not been restated for GASB 96 adoption.

December 31, 2023

Alamo Area Council of Governments’ Outstanding Long-Term Liabilities at Year-End

Governmental Activities 2023 2022

Compensated absences $ 732,482 $ 644,693 Lease liability 427,414 602,524 Subscription liability 55,339 - Long-term obligations 11,611,327 11,688,010

Total long-term liabilities $ 12,826,562 $ 12,935,227

The Council’s total debt decreased by $108,665. This liability reflects the payout of paid time off (PTO) of $732,482 due upon termination, the $427,414 lease liability related to the long-term rental of the Wetmore building, subscription liabilities of $55,339 for Subscription Based IT Agreements longer than one year, and the long-term obligation of $11,611,327 on the loan for the Titan Complex. Additional information on the Council’s long-term liabilities can be found in Note 8 of this report.

Economic Factors and Next Year’s Financial Plan

The Council’s approved 2023 annual financial budget reflected $78,142,426 for revenues and $79,012,565 for expenditures. The 2023 actual revenues are $84,091,611 and actual expenditures are $83,207,675 for an increase of $5,983,455 and $4,195,121, respectively, per the Statement of Revenues, Expenditures, and Changes in Fund Balance, when compared to the 2023 annual financial budget.

The Council’s combined ending fund balance of $10,646,774 includes $11,892,140 of dedicated program fund balance and $(1,245,366) of general fund balance. The general fund balance decreased by $1,666,714 during fiscal year 2023 and is projecting a decrease of $1,260,000 for 2024. The grants fund balance increased by $2,878,954 for 2023 and is projecting an increase of $2,050,000 in 2024. The 2023 net decrease to the general fund balance is primarily due to the Titan Complex expenditures exceeding the rent collected and occupancy recoveries from Council programs. The 2023 net increase to the special revenue fund balance is primarily from the Veterans Directed program funded by the U.S Department of Veterans Affairs.

The Area Agencies on Aging (AAA), including the Bexar and Alamo AAAs, delivered services across the region's 13 counties. Services included the Alamo Service Connection, Aging and Disability Resource Center, Benefits Counseling Services, Access and Caregiver Support, Nutrition and Transportation, Long-Term Care Ombudsman, and the Senior Companion Program.

The Alamo Service Connection managed over 27,936 calls, supporting older adults, individuals with disabilities, and veterans. Benefits Counselors assisted over 2,800 beneficiaries with Medicare and other applications, handled over 1,000 cases, provided legal assistance to 2,500 clients, and made over 2,480 unduplicated referrals. The Caregiver Support Program served 2,771 clients and produced training videos, while Health & Wellness programs engaged 623 participants and distributed 2,000 educational packets. Nutrition services delivered 467,773 Home Delivered

December 31, 2023

Meals and 807,371 Congregate meals, and the Transportation Program facilitated 17,755 one-way trips. The Alamo and Bexar Long-Term Care Ombudsman Program conducted a combined total of 3,050 facility visits. Finally, the Senior Companion program with 32 volunteers provided 27,439 hours of support to socially isolated veterans and older adults with companionship and daily assistance.

The Intellectual & Developmental Disabilities Services (IDDS) program provided over 200,000 service coordination and case management services in 2023. The pilot programs forged with the Bexar County Jail and University Health System in 2022 were a success leading to renewed contracts. IDD Services also collaborated with the Multi Assistance Center, better known as the MAC and has a liaison housed on site. IDD Services has also had the privilege of working with the City of San Antonio in an effort to reduce the line at the front door for IDD Services by ensuring access to psychological services.

The PACE program closed on four new projects in 2023, including the largest in the Alamo Area at the time. Assessed at $28 million, the future Intercontinental Hotel (formerly Wyndham) undergoing improved Heating, Ventilation, and Air Conditioning (HVAC) efficiency, electrical and lighting improvements, envelope improvements, and plumbing and water conservation. The projects that closed in 2023, one for $140,000 and the other for $48 million, demonstrate the variety in which projects can implement PACE financing.

The Veteran Directed Care (VDC) program, in partnership with the Veterans Administration, empowers veterans to manage their services from home and has become the largest program of its kind in the U.S., serving over 600 veterans within a 120-mile radius of San Antonio. The Alamo Veterans Network (AVN), previously funded by a Texas Workforce Commission grant, continues under the council’s funding, serving veterans across 13 counties and partnering with over 270 organizations. The Rides 4 Texas Heroes program, supported by a $300,000 Texas Veterans Commission grant, provided free transportation to 4,688 veterans and family members in 2023.

The council also secured a $1.2 million Military Installation Resilience Review (MIRR) grant to study infrastructure resilience around JBSA installations, and a $750,000 Defense Economic Adjustment Assistance Grant to upgrade communication infrastructure at JBSA-Lackland, and the McMullen range complex.

Alamo Regional Transit (ART) continued to provide vital transportation during increasingly difficult economic conditions. In 2023, 137,890 rides were scheduled and completed. The use of the Ecolane app increased in 2023 with a total of 18,000 trips scheduled using the app. A total of 115 school children took over 7,500 trips to get to and from school in the rural communities.

The Weatherization Assistance (WX) program aids low-income families in reducing energy expenses by enhancing energy efficiency through weather stripping, caulking, and insulation.

Additionally, it supports individuals with disabilities by making minor home modifications for accessibility. Funded by Low-Income Home Energy Program (LIHEAP), Department of Energy (DOE), and Department of Energy Bipartisan Infrastructure Law (DOE BIL), the program ensures homes maintain optimal temperatures year-round, boosting disposable income and quality of life.

In 2023, WX utilized over $1,337,000 in LIHEAP funds to weatherize 83 homes and $275,000 in DOE funds for 36 homes. The Homes for Texas Heroes (H4TXH) program, with a $215,000 budget, provided minor repairs and accessibility upgrades to 11 veteran families in 2023 and

December 31, 2023 anticipates assisting 20 families with an increased budget in 2024.

The Alamo Area Regional Law Enforcement Academy (AARLEA) trains individuals for peace officer and corrections officer licensure in the State of Texas. With the ongoing need for law enforcement personnel, in 2023 the Academy saw cadet sponsorships per class increase to an average of 70-80%.

Each year the Criminal Justice program conducts grant workshops about local, state, and federal funding opportunities and offers technical assistance to area law enforcement agencies. In 2023, the Criminal Justice program continued to offer grant writing and grant management courses, and ultimately received 86 applications for funding from Alamo Area agencies.

Information Requests

This financial report is designed to provide a general overview of the Council’s finances for all those with an interest in the organization. Questions concerning any of the information provided in this report or requests for additional information should be addressed to the office of the Chief Financial Officer, Alamo Area Council of Governments, 2700 NE Loop 410, Suite 101, San Antonio, Texas 78217.

The Council’s administrative offices are located at 2700 NE Loop 410, Titan Tower, San Antonio, Texas.

BASIC FINANCIAL STATEMENTS

Statement of Net Position

December 31, 2023 Primary

Government Governmental

Activities Assets

Cash and investments $ 9,485,411 Receivables:

Grantors 12,943,818 Leases 1,473,014 Other 483,355

Deposits 25,459 Prepaids 664,546 Capital assets, not being depreciated:

Land 2,957,124 Capital assets, net of accumulated depreciation/amortization:

Equipment 1,253,778 Furniture and fixtures 67,762 Software 385,572 Vehicles 3,308,160 Lease asset: Building 405,673 Buildings and improvements 12,479,432 Subscription assets 74,912

Total assets 46,008,016

Deferred Outflows of Resources Pensions 2,626,594

Total deferred outflows of resources 2,626,594

Liabilities Accounts payable 8,663,791 Accrued liabilities 1,420,598 Unearned revenue 3,274,940 Noncurrent liabilities:

Due within one year:

Current portion of lease liability 197,135 Current portion of subscription liabilities 55,339 Current portion of long-term obligations 419,874 Compensated absences 183,121

Due in more than one year:

Noncurrent portion of lease liability 230,279 Noncurrent portion of long-term obligations 11,191,453 Noncurrent portion of compensated absences 549,361 Net pension liability 663,457

Total liabilities 26,849,348

Deferred Inflows of Resources Leases 1,069,500 Pensions 61,483

Total deferred inflows of resources 1,130,983

Net Position Net investment in capital assets 8,838,330 Restricted for grant programs:

Workforce development 8,002 Aging and veterans services 2,386,271 Economic development 103,245 Environmental quality 134,469 Community affairs 26,380 Homeland security 74,783 Transportation 3,771,909 Criminal justice 6,731,360 Health and welfare 13,955

Unrestricted (deficit) (1,434,425) Total net position $ 20,654,279

16See Notes to Financial Statements

Statement of Activities

For the Year Ended December 31, 2023

Program Revenues

Net (Expense) Revenue and

Changes in Net Position

Functions/Programs Expenses

Indirect Expense

Allocation Charges for

Services

Operating Grants and

Contributions

Capital Grants and

Contributions Governmental

Activities

Primary Government:

Governmental activities:

General government $ 7,709,522 $ (3,525,972) $ 39,421 $ 2,796,631 $ - $ (1,347,498) Aging and veterans services 45,862,342 889,157 261,532 48,506,652 - 2,016,685 Emergency communications 1,696,218 92,142 - 1,802,785 - 14,425 Economic development 378,902 14,689 - 440,387 - 46,796 Environmental quality 1,410,045 79,646 - 1,396,694 - (92,997) Community affairs 2,068,546 110,648 - 2,170,809 - (8,385) Homeland security 1,492,706 19,529 - 361,802 1,000,000 (150,433) Transportation 6,715,821 715,154 5,915 7,034,373 940,000 549,313 Workforce development 81,784 9,925 - 33,232 - (58,477) Criminal justice 1,395,631 96,565 477,743 902,369 - (112,084) Health and welfare 14,248,403 1,498,517 10 15,337,645 - (409,265) Interest on leases 15,058 - - - - (15,058) Interest on SBITAs 1,799 - - - - (1,799) Interest on long-term debt 440,995 - - - - (440,995)

Total governmental activities 83,517,772 - 784,621 80,783,379 1,940,000 (9,772)

Total primary government $ 83,517,772 $ - $ 784,621 $ 80,783,379 $ 1,940,000 $ (9,772)

General revenues Unrestricted investment earnings 233,537 Membership dues 350,074

Total general revenues 583,611

Change in net position 573,839

Net position, beginning 20,080,440

Net position, ending $ 20,654,279

17See Notes to Financial Statements

Balance Sheet

Governmental Funds December 31, 2023

General Grants Fund

Total Governmental

Funds Assets

Cash and investments $ 3,166,682 $ 6,318,729 $ 9,485,411 Accounts receivable:

Grantors 151,941 12,791,877 12,943,818 Leases 1,473,014 - 1,473,014 Other 483,255 100 483,355

Due from other funds - 20,261,141 20,261,141 Deposits 11,555 13,904 25,459 Prepaid items 118,425 546,121 664,546

Total assets $ 5,404,872 $ 39,931,872 $ 45,336,744

Liabilities Accounts payable $ 902,898 $ 7,760,893 $ 8,663,791 Accrued liabilities 1,118,187 302,411 1,420,598 Due to other funds 3,014,735 17,246,406 20,261,141 Unearned revenue 544,918 2,730,022 3,274,940

Total liabilities 5,580,738 28,039,732 33,620,470

Deferred Inflows of Resources Leases 1,069,500 - 1,069,500

Fund Balances Nonspendable:

Prepaid items 118,425 546,121 664,546 Restricted:

Grants - 13,257,337 13,257,337 Unassigned (deficit) (1,363,791) (1,911,318) (3,275,109)

Total fund balances (1,245,366) 11,892,140 10,646,774

Total liabilities, deferred inflows of resources, and fund balances $ 5,404,872 $ 39,931,872 $ 45,336,744

18See Notes to Financial Statements

Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position December 31, 2023

See Notes to Financial Statements

Amounts reported for governmental activities in the statement of net position are different because:

Total fund balances – governmental funds $ 10,646,774

Capital assets of $35,371,109, net of accumulated depreciation and amortization of $14,438,699 used in governmental activities are not financial resources and, therefore, are not reported in the funds. 20,932,413

The net pension liability reported in governmental activities is not a current financial resource and, therefore, is not reported in the funds. (663,457)

Differences between expected and actual experiences, assumption changes, and net differences between projected and actual earnings and contributions subsequent to the measurement date for pension are recognized as deferred outflows and inflows of resources on the statement of net position.

Deferred outflows: pension 2,626,594 Deferred inflows: pension (61,483)

Long-term liabilities are not due and payable in the current period and, therefore, are not reported in the funds:

Lease liability (427,414) Subscription liability (55,339) Long-term obligations (11,611,327) Compensated absences (732,482)

Net position of governmental activities $ 20,654,279

Statement of Revenues, Expenditures, and

Changes in Fund Balances Governmental Funds

For the Year Ended December 31, 2023

General Grants Fund Total

Governmental Revenues

Intergovernmental $ 2,341,225 $ 37,883,029 $ 40,224,254 Matching funds - 5,503,158 5,503,158 Local 293,672 36,702,295 36,995,967 Program income 39,421 745,200 784,621 Membership dues 350,074 - 350,074 Investment income 52,034 181,503 233,537

Total revenues 3,076,426 81,015,185 84,091,611

Expenditures Current:

General government 2,939,214 196,733 3,135,947 Aging and veterans services - 46,875,049 46,875,049 Health and welfare - 15,700,919 15,700,919 Transportation - 6,697,879 6,697,879 Workforce development - 91,955 91,955 Environmental quality - 1,448,192 1,448,192 Community affairs - 2,167,367 2,167,367 Criminal justice - 1,373,317 1,373,317 Emergency communications - 1,793,160 1,793,160 Homeland security - 1,358,728 1,358,728 Economic development - 394,648 394,648

Capital outlay 50,792 1,006,865 1,057,657 Leases:

Principal retirement 175,110 - 175,110 Interest 15,058 - 15,058 SBITA - Principal Retirement 74,908 - 74,908 SBITA - Interest 1,799 - 1,799

Debt Service:

Principal retirement 404,987 - 404,987 Interest 440,995 - 440,995

Total expenditures 4,102,863 79,104,812 83,207,675

Excess (Deficiency) of Revenues Over (Under) Expenditures (1,026,437) 1,910,373 883,936

Other Financing Sources (Uses) Issuance of Long-Term Debt 328,304 - 328,304 Transfers in 3,330 6,441,921 6,445,251 Transfers out (971,911) (5,473,340) (6,445,251)

Total other financing sources (uses) (640,277) 968,581 328,304

Net Change in Fund Balances (1,666,714) 2,878,954 1,212,240

Fund Balances, Beginning 421,348 9,013,186 9,434,534

Fund Balances, Ending $ (1,245,366) $ 11,892,140 $ 10,646,774

20See Notes to Financial Statements

Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund

Balances of Governmental Funds to the Statement of Net Position For the Year Ended December 31, 2023

Amounts reported for governmental activities in the statement of activities are different because:

Net change in fund balances – total governmental funds $ 1,212,240

Governmental funds report capital outlays as expenditures. However, in the statement of activities, the cost of these assets is allocated over their estimated useful lives and reported as depreciation expense.

Capital outlay 1,057,657 Depreciation and amortization expense (2,245,471)

The issuance of long-term debt (e.g., bonds, notes, leases, and loans) provides current financial resources to governmental funds, while the repayment of the principal of long-term debt consumes the current financial resources of governmental funds. Neither transaction, however, has any effect on net position. This amount is the net effect of these differences in treatment of long-term debt and related items:

Long-term debt issued (328,304) Payments on leases 175,110 Payments on subscription assets 74,908 Payments on long-term obligations 404,987

Some expenses reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds:

Compensated absences (87,794) Change in net pension asset/liability and related deferred outflows and deferred inflows of resources 310,506

Change in net position of governmental activities $ 573,839

See Notes to Financial Statements

Notes to Financial Statements

December 31, 2023

Note 1: Summary of Significant Accounting Policies

The financial statements of the Alamo Area Council of Governments (the Council) have been prepared in conformity with generally accepted accounting principles (GAAP) as applied to government units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles.

The following represents the significant accounting policies and practices used by the Council.

Reporting Entity

The Council is a political subdivision of the state of Texas and a voluntary association of local governments within a 13-county region. The Council was established in 1967 to study and resolve area-wide problems through the cooperation and coordination action of member cities, counties, school districts, and special purpose districts of the region.

Membership in the Council is voluntary. Any county, city, or special purpose district within the region may become a member in the independent association by passing a resolution to join the Council and paying annual dues. The Council is governed by a 31-member Board of Directors from member local governments. Each member government is entitled to have voting representation on the Board of Directors.

The accompanying financial statements present the Council and its component units, entities for which the Council is considered to be financially accountable. Blended components are, in substance, part of the primary government’s operations, even though they are legally separate entities. Thus, blended component units are appropriately presented as funds of the primary government. The Council has one blended component unit, described below. Each discretely presented component unit is reported in a separate column in the government-wide financial statements to emphasize that it is legally separate from the Council. The Council has no discretely presented component units.

Blended Component Unit

During 1995, the Council formed a nonprofit organization, Alamo Area Development Corporation (AADC). AADC is governed by a board of seven and must reside within the jurisdictional boundaries of the following counties: Atascosa, Bandera, Bexar, Comal, Frio, Gillespie, Guadalupe, Karnes, Kendall, Kerr, Medina, and Wilson. AADC is reported as a component unit because the Council appoints its governing body and can remove its members at will. The Council also guarantees AADC’s debt obligations. There was no debt outstanding as of December 31, 2023.

Description of Government-Wide and Fund Financial Statements

The government-wide financial statements (i.e., the statement of net position and the statement of activities) report information on all of the nonfiduciary activities of the primary government and its component units. The Council has no fiduciary activities.

December 31, 2023

Governmental activities, which normally are supported primarily by intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges to external customers for support. Likewise, the primary government is reported separately from its legally separate component unit for which the primary government is financially accountable.

Basis of Presentation – Government-Wide Financial Statements

While separate government-wide and fund financial statements are presented, they are interrelated.

The governmental activities column incorporates data from governmental funds. The Council does not utilize any proprietary funds or fiduciary funds.

As discussed earlier, the Council has one discretely presented component unit. AADC is shown in a separate column in the government-wide financial statements.

As a general rule, the effect of interfund activity has been eliminated from the government-wide financial statements. Exceptions to this general rule are payments where the amounts are reasonably equivalent in value to the interfund services provided. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned.

The statement of activities demonstrates the degree to which the direct expenses of a given function, or segment, are offset by program revenue. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenue includes 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment, and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Other items not properly included among program revenue are reported instead as general revenue.

Basis of Presentation – Fund Financial Statements

The fund financial statements provide information about the Council’s funds. The Council only utilizes governmental funds. The emphasis of fund financial statements is on major funds, each displayed in a separate column. All remaining governmental funds are aggregated and reported as nonmajor funds. The Council has no nonmajor funds.

The Council reports the following major governmental funds:

The General Fund is the Council’s primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund.

The Grants Fund is used to account for grants awarded by various organizations.

Further, certain activity occurs during the year involving transfers of resources between funds. In fund financial statements, these amounts are reported at gross amounts as transfers in/out. While reported in fund financial statements, eliminations are made in the preparation of the government-wide financial statements.

December 31, 2023

Measurement Focus and Basis of Accounting

The accounting…