VILLAGE OF SAN LEANNA  AUDITED BASIC. FINANCIALSTATEMENTS AND SUPPLEMENTALSCHEDULES AND INDEPENDENT AUDITOR'SI REPORT FOR' THE FISCAL YEAR: ENDED SEPTEMBER 30, 2022    VILLAGE OF SANLEANNA TABLE OF CONTENTS  Independent Auditor's Report Management's Discussion and. Analysis Statement ofNet Position Statement of Activities  1-3 4-9 10 11 12 13-14 15 16 17 18-25  Balance Sheet- - Governmental Funds Statement ofRevenues, Expenditures, and Changes in Fund Balances - Governmental Funds Statement of Fund Net Position- - Proprietary Funds  Statement ofl Revenues, Expenses and Changes in Net Fund Position - Proprietary Funds Statement of Cash Flows Increase (Decrease) in Cash and Cash Equivalents - Proprietary Funds  Notes tol Financial Statements Required Supplementary Information Schedule ofRevenues, Expenditures, and Changes in Fund! Balance Budget and. Actual (Non-GAAP Budgetary Basis) General Fund Schedule ofRevenues, Expenditures, and Changes inl Fund Balance Budget and Actual (Non-GAAP Budgetary Basis) Proprietary Fund  26  27 28  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    The Acoounting Hm pf A Donald L. Allman, CPA CERTIFIED PUBLIC ACCOUNTANT  Donald. Allman, CPA, PC 4749 Williams Drive, Ste. 322 Georgetown, Texas 78633 Email: ilman2.omalimancacon  D  Independent Auditor's Report  To the Honorable Mayor and Members of the Village Board of Alderman  Village of San Leanna, Texas Report on the Audit of the Financial Statements  Opinions  We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the Village of San Leanna, Texas as of and for the year ended September 30,2022, and the related notes to the financial statements, which collectively comprise the Village of In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the Village of San Leanna, Texas, as of September 30, 2022, and the respective changes in financial position, and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles  San Leanna, Texas' basic financial statements as listed in the table of contents.  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 and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. 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 Village of San Leanna, Texas 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.  Responsibillties 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 Village of San Leanna, Texas' ability to continue as a going concern for twelve months beyond the financial statement  date, including any currently known information that may raise substantial doubt shortly thereafter.  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 generally accepted auditing standards 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.    Thc Accounting limm of Donald L. Allman, CPA,PC  Donald L Allman, CPA, PC 4749 Williams Drive.,  CERTIFIED PUBLIC ACCOUNTANT  INDEPENDENT AUDITOR'S REPORT (Continued)  Inp performing an audit in accordance with generally accepted auditing standards and Government. Auditing Standards, we:  Exercise professional judgment and maintain professional skepticism throughout the audit. basis, evidence regarding the amounts and disclosures in the financial statements.  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 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 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 Village of San Leanna, Texas' ability to continue as a going concern for a reasonable 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  Village of San Leanna, Texas' internal control. Accordingly, no such opinion is expressed.  period of time.  audit.  Required Supplementary Information  Accounting principles generally accepted in the United States of America require that the managements discussion and analysis and budgetary comparison information on pages 4-11 and 39-40 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 auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with managements 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 Supplementary Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Village of San Leanna, Texas' basic financial statements. The accompanying combining and individual nonmajor fund financial statements and 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, 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 auditing standards generally accepted in the United States of America. In our opinion, the combining andi individual nonmajor fund financial statements and the schedule of expenditures of federal awards are fairly  dor not provide us with sufficient evidence to express an opinion or provide any assurance.  stated, in all material respects, in relation to the basic financial statements as a whole  2    The Accounting Firm of Donald L. Allman, CPA,PC PUBLIC ACCOUNTANT  Donald L. Allman, CPA, PC 4749 Williams Drive., Ste.  322  INDEPENDENT AUDITOR'S REPORT (Continued)  Other Information  Management is responsible for the other information included in the annual report. The other information comprises the introductory and statistical sections 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 Inc 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 oft the other information exists, we are required to describe it in our report.  any form of assurance thereon.  Other Reporting Required by Government. Auditing Standards  In accordance with Government Auditing Standards, we have also issued our report dated August 30, 2023 on our consideration of the Village of San Leanna, Texas' 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 Village of San Leanna, Texas' 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 Village of San Leanna, Texas' internal control over financial reporting and  compliance.  far  Donald L. Allman, CPA, PC September 18, 2023 Georgetown, Texas  MEMBER TEXAS SOCIETY OF CERTIFIED! PUBLIC ACCOUNTANTS. & AMERICAN INSTITUTE OF CERTIFIED! PUBLICI ACCOUNTANTS 4749 Williams Drive, Ste. 322, GEORGETOWN, TEXAS 78633 512-422-3700 FAX: 512-240-5460 WEBSITE  ww.domallmancpa.cen 3    VILLAGE OF SAN LEANNA  MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE YEAR ENDED SEPTEMBER 30, 2022  Within this section of the Village of San Leanna's annual financial report, the 's management provides narrative discussion and analysis of the financial activities of the Village for the fiscal year ended September 30, 2022. The Village's financial pertormance is discussed and analyzed within the context of the accompanying financial statements and  disclosure following this section.  The discussion focuses on the  Village's primary government, unless otherwise noted.  FINANCIAL HIGHLIGHTS  The Village's assets exceeded its liabilities by $1,915,230 (net position) for the fiscal year reported. This compares to the previous year when assets exceeded liabilities by $1,813,497 an increase of $101,733. The Village's General Fund reported revenues of $291,769 and expenses of $234,114 for a net position decrease (loss) of $57,655, before transfers. The Village's Proprietary Fund reported revenues of $169,883 and expenses of $125,805, for a net position increase $44,078, before transfers.  Overview of the Financial Statements  Management's Discussion and Analysis introduces the Village's basic government-wide financial statements, (2) fund financial statements, and  financial statements.  The basic financial statements include (1)  (3) notes to the financial statements. Government-wide Financial Statements  The Village's annual report includes two government-wide financial information about the Village's overall status. Financial reporting at this level uses a perspective similar to that found in the private sector with its basis in full accrual accounting and elimination or The first of these government-wide statements is the Statement of Net presenting information that includes all of the Village's assets and liabilities, with the difference reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the Village as a whole is improving or deteriorating. Evaluation of the overall economic health of the Village  statements.  These statements provide both long-term and short-term  reclassification of internal activities.  Position.  This is the Village-wide statement of financial position  4    VILLAGE OF SAN LEANNA  MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE YEAR ENDED SEPTEMBER 30, 2022  would extend to other non-financial factors such as diversification of the taxpayer base or the condition of the Village infrastructure in addition The second government-wide statement is the Statement of Activities, which reports how the Village's net position changed during the current fiscal year. All current year revenues and expenses are included regardless of when cash is received or paid. An important purpose of the design of the statement of activities is to show the financial reliance of the Village's activities or functions on revenues provided by the Village's taxpayers. governmental activities of the Village that are principary supported by taxes, and business-type activities that are intended to cover all or a significant portion of their costs through user fees and charges. Governmental activities include general government, public safety, and public services. Business-type activities include water utilities.  to the financial information provided in this report.  Both  government-wide  financial  statements  distinctively  report  Fund Financial Statements  A fund is an accountability unit used to maintain control over resources segregated for specific activities or objectives. The Village uses funds to ensure and demonstrate compliance with finance-related laws and Governmental Funds are reported in the fund financial statements and encompass essentially the same functions reported as governmental focus is very different with fund statements providing a distinctive view of the Village's governmental funds. These statements report short-term fiscal accountability focusing on the use of spendable resources during the year and balances of spendable resources available at the end of the year. They are useful in evaluating annual financing requirements of governmental programs and the commitment of spendable resources for the Since the government-wide focus includes the long-term view, comparisons between these two perspectives may provide insight into the long-term balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provides a reconciliation to the government-wide financial statements to assist in understanding the Budgetary comparison statements are included in the basic financial statements for the general fund. These statements demonstrate compliance  regulations. The Village has two kinds of funds.  activities in the government-wide financial statements.  However, the  near-term.  impact of short-term financing decisions.  Both the governmental fund  differences between these two perspectives.  with the Village's adopted and final revised budget.  5    VILLAGE OF SAN LEANNA  MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE YEAR ENDED SEPTEMBER 30, 2022  Proprietary funds are reported in the fund financial statements and generally report services for which the Village charges customers a fee. There are two kinds of proprietary funds, enterprise funds and internal service funds. The Village uses enterprise funds to account for providing The accompanying notes to the financial statements provide information essential to a full understanding of the government-wide and fund  water utility services to customers. Notes to the Financial Statements  financial statements.  The notes to the financial statements begin  immediately following the basic financial statements. Financial Analysis of the Village as a Whole  As year-to-year financial information is accumulated on a consistent basis, changes in net assets may be observed and used to discuss the The Village's net position at fiscal year-end is $1,915,230. This is a increase of $22,406 over last year's net position of $1,813,497. following table provides a summary of the Village's net position at  changing financial position of the Village as a whole.  The  September 30:  Table 1 Summary of Net Position  2022 704,678 1,210,552 $1,915,230 $ $  2021 $ 524,855 1,288,642 1 1,813,497 $ $  $Change s 179,823 (78,090) 101,733 $ $  %Change 34.3% -6.1% 5.6%  Cash and Current. Assets Capital Assets Total. Assets Current Liabilities Long-Term Liabilities Total Liabilities Net Position: Restricted Unrestricted Total Net Position  Net Investment in Capital Assets $ 1,210,552  $1,288,642 524,855 $1 1,813,497  $ (78,090) 179,823 $ 101,733  -6.1% 34.3% 5.6%  704,678 $1 1,915,230  The Village reported positive balances in net position for both $101,733. The Village's overall financial position improved during fiscal  governmental and business-type activities.  Net position increased  year 2022.  6    VILLAGE OF SAN LEANNA  MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE YEAR ENDED SEPTEMBER 30, 2022  Table 2 compares the 2022 change in net position to the 2021 change in net  position.  Table2  Summary of Changes in Net Position  2022 $ 169,883 199,516 15,181 3,120 6,593 63,062 4,297 461,652 125,805 234,114 $ 359,919 $ 101,733 $1 1,813,497 $1,915,230  2021 $ 125,815 181,166 14,141 4,760 14,000 62,814 202 402,898 $ 98,019 281,124 1,349 380,492 $ 22,406 $1,791,091 $1,813,497  $Change $ 44,068 18,350 1,040 (1,640) (7,407) 248 4,095 $ 58,754 $ 27,786 (47,010) (1,349) $ (20,573) $ 79,327  % Change 35.0% 10.1% 7.4% 100.0% 100.0% 100.0% 2027.2% 14.6% 28.3% -16.7% -100.0% -5.4% 354.0%  Program Revenues: Charges for Services General Revenues: Property Taxes Franchise Fees Building Permits Capital Metro Coronavirus Grant Other Interest Income Total Revenues Program Expenses: Water Utilities General Government Interest on L/TDebt Total Expenses Net Position Increase Net Position - Beginning Net Position- Ending Governmental Funds  Financial Analysis of the Village's Funds  As discussed, governmental funds are reported in the fund statements with a short-term, inflow and outflow of spendable resources focus. information is useful in assessing resources available at the end of the year in comparison with upcoming financing requirements. funds reported ending fund balances of $88,997. Of this total, $(93,043) is unreserved indicating availability for continuing Village service requirements. Reserved fund balances include $0 for Debt Service, $42,040 for special revenues, and $140,000 for Road Funds. The Debt Service Fund reflects the principal and interest payments due over the next fiscal year, plus additional reserve stipulated by the Village Council.  This  Governmental  7    VILLAGE OF SAN LEANNA  MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE YEAR ENDED SEPTEMBER 30, 2022  Proprietary Funds financial status.  The proprietary fund statements share the same focus as the government- wide statements, reporting both short-term and long-term information about Enterprise Water Utility Funds comprise the financing and operations of the Village's water utilities reported within this activity in the government-wide statements. The proprietary funds net position balance at fiscal year-end is $632,586. Revenues received in the proprietary funds for water utilities services totaled $169,883 for fiscal year 2022. Proprietary fund expenditures for water utility services totaled $125,805,  resulting in net income of $44,078. General Fund Budgetary Highlights  The adopted General Fund budget for fiscal year 2022 was approximately  $218,777.  Actual expenditures for fiscal year 2022 were approximately  $158,792, a decrease of approximately $59,985. CAPITAL ASSETS AND DEBT ADMINISTRATION  Capital Assets  The Village's investment in capital assets, net of accumulated depreciation, for governmental and business-type activities as of September 30, 2022, was $1,187,831 and $22,721, respectively. The overall decrease was $(78,090), 6.1% for the Village as a whole. Depreciation was $43,030 for the Water Service Project, $770 for Water Utilities, and  $34,290 for General Fixed Assets.  Capital Assets  Net of Accumulated Depreciation  2022 26,107 228,321 953,510 2,614 $1,210,552  2021 $ 26,107 271,351 987,800 3,384 $1,288,642  $Change $ (43,030) (34,290) (770) $ (78,090)  %C Change 0.0% -15.9% -3.5% -22.8% -6.1%  Non-Depreciable Assets: Land Water Sérvice Project Depreciable. Assets: General Fixed Assets Water Utilities Total  8    VILLAGE OF SAN LEANNA  MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE YEAR ENDED SEPTEMBER 30, 2022  Debt Administration  At the end of June of 2014, the Village refinanced Texas Water System Revenue Bond debt outstanding in the amount of $485,000. Bond interest coupon rates are 2.89% and are payable on February 15 and August 15 of each year. Refinancing this debt saves the Village $88,213 over the life  of the loan. The Bond, was paid off in full in October 2020.  Economic Environment and Next Year's Budgets and Rates  No material changes in the economic environment, Village budget expenditures, and water utilities rates are expected in the next fiscal  year.  Contacting the Village's Financial Management  This financial report is designed to provide a general overview of the Village's finances, comply with finance-related laws and regulations, and demonstrate the Village's commitment to public accountabillty. have any questions about this report or would like to request additional information, contact the Village's should be addressed to the Village of  If you  San Leanna, P.O. Box 1107, Manchaca, TX 78652.  Rebecca Howe, Village Administrator Village of San Leanna, TX  9    VILLAGE OF SANLEANNA STATEMENT OF NET POSITION SEPTEMBER 30, 2022  Primary Government Business-Type Activities  Governmental Activities  Total $ 684,384 20,294 $ 704,678  ASSETS: Current. Assets: Non-Pooled Cash (Operating) Accounts Receivable Due From General Fund Total Current Assets Non-Current Assets: Capital Assets: Depreciation Land Total Non-Current Assets Total Assets LIABILITIES: Current Liabilities Accounts Payable Deferred Revenue Due to Water Fund Bond Payable, Current Total Current Liabilities Non Current Liabilities: Bond Payable, Non-Current Total Non-Current Liabilities Totall Liabilities NET POSITION: Net Investment in Capital Assets Restricted for: Debt Service Unrestricted Total Net Position  Pooled cash and cash equivalents (Texpool Savings) $  88,997 5,816 94,813  $  595,387 14,478 609,865  $  $  Plant Equipment & Roads, Net of Accumulated  $ 1,181,831 6,000 $ 1,187,831 $ 1,282,644  $ $ $  2,614 20,107 22,721 632,586  1,184,445 26,107 1,210,552 1,915,230  $  $  $  $ $ $ $  $ $ $ $ $  $ 1,187,831 94,813 $ 1,282,644 10  22,721 609,865 632,586  $ 1,210,552 704,678 $ 1,915,230  The accompanying notes are an integral part of the financial statements.    VILLAGE OF SANLEANNA STATEMENT OF ACTIVITIES  FOR THE YEAR ENDED SEPTEMBER 30, 2022  Program Revenues  Net (Expense) Revenue  functions/Programs Primary Government Governmental Activities: General Government Interest on Long-Term Debt Total Governmental Activities Business-Type Activities: Water Utilities Total Business-Type Activities Total Primary Government  Expenses  $ $ $ $ $  234,114 234,114 125,805 125,805 359,919  $ $ $ $ $  $ $ $ $ $  (234,114) (234,114) 44,078 44,078 (190,036)  169,883 169,883 169,883  Primary Government Business-Type Activities $ 44,078 $  Governmental Activities $ (234,114)  Total $ (190,036) $ 199,516 15,181 4,297 3,120 6,593 63,062 291,769  Changes in Net Position: Net (Expense) Revenue General Revenues: Taxes: Property Taxes Franchise Fees Interest Income Building Permits Miscellaneous Community Center Rent Coronavirus grant Total General Revenues Transfers In Transfers Out  $  199,516 15,181 4,297 3,120 6,593 63,062 291,769 (89,449) $ (31,794) $ 1,314,438 $ 1,282,644  $  $  44,078 89,449 133,527 499,059 632,586  $  Changes in Net Position Net Position - Beginning Net Position - Ending  $ $ $  $ 101,733 $ 1,813,497 $ 1,915,230  The accompanying notes are an integral part oft the financial statements.  11    VILLAGE OF SANLEANNA SEPTEMBER 30, 2022  BALANCE SHEET GOVERNMENTAL FUNDS  Total Governmental Funds $ 88,997 5,816 $ 94,813  General $ 88,997 5,816 $ 94,813  Debt Service $ $  Assets: Pooled Cash and Cash Equivalents Non-Pooled Cash Accounts Receivable Total Assets Liabilities and Fund Balances Liabilities: Accounts Payable Unearned Revenue Total Liabilities Fund Balances Nonspendable Restricted for Debt Service Committed for Revenue Committed for Road Funds Assigned Unassigned Total Fund Balances  $ $ $  $ $ $  $ $ $  5,816 5,816  5,816 5,816  42,040 140,000 (93,043) 88,997 94,813  42,040 140,000 (93,043) 88,997 94,813  $ $  $ $  $ $  Total Liabilities and Fund Balances STATEMENT OF NET POSITION Total fund balance t total governmental funds  RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS TO THE  $88,997 5,816 1,187,831  Amounts reported for governmental activities in the statement of net assets are different because:  Deferred. Revenue, property taxes not attributable to current year therefore, are: not reported in the: funds. See Note III.A.3. for additional detail.  Capital assets of $2,445,802 net of accumulated depreciation (of $1,257,971), are not financial resources, and Long-term liabilities of (0) are not due and payable in the current period and are not reported in the funds. See  Note III.B.2. for detail.  0  Net position of governmental activities  $1,282,644  The accompanying notes are an integral part of the financial statements.  12    STATEMENT OF REVENUES, EXPENDITURES. AND CHANGES! IN BALANCES-  COVERMMENTALIUNDS SEPTEMBER 30, 2022  Total Governmental Funds $ 199,516 15,181 4,297 3,120 63,062 6,593 291,769 158,792  General $ 199,516 15,181 4,297 3,120 63,062 6,593 291,769 158,792  Debt Service $  Revenues Property Taxes Franchise Taxes Interest Income Building Permits Coronavirus grant Community Center Rent Miscellaneous Total General Revenues Expenditures General Government Debt Service: Principal Interest & Bond Fee Capital Assets Total Expenditures Excess (Deficiency) of Revenues & Expenditures Transfers in Transfers Out  $ $  $ $  $ $  $ $  158,792 132,977 (89,449) 43,528 45,469 88,997  $ $  $ $  158,792 132,977 (89,449) 43,528 45,469 88,997  Net Changes in Fund Balances Fund Balances Beginning Fund Balances - Ending  $ $ $  $ $ $  $ $ $  The accompanying notes are an integral part oft the financial statements.  13    VILLAGE OE; SANLEANNA  RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES OF COYERMMENTALPUNDSTOTHESTATENENT OF ACTIVITIES  FOR' THE YEAR: ENDED SEPTEMBER30,2022  Net change in fund balance - total governmental funds  $43,528 (19,115)  Amounts reported for governmental activities in the statement of net assets are different because:  Difference in Property Tax Revenues for Governmental Funds  Governmental funds report capital outlays as expenditures. However, in the statement of activities, the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense. This is the amount The proceeds of debt issuances provide current financial resources to governmental funds, but issuing debt increases long-term liabilities in the amount of net position. Repayment of debt principal is an expenditure in the governmental funds, but the repayment reduces long-term liabilities int the statement ofr net position.  by which capital outlays of $0 were less than depreciation of $77,320 in the current period.  77,320  Debt payments  0  Changes in net position of governmental activities  $ 101,733  The accompanying notes are an integral part oft the financial statements.  14    VILLAGE OF SANLEANNA  STATEMENT OFI FUND NET POSITION - PROPRIETARY FUNDS  SEPTEMBER 30, 2022  Total Enterprise Funds  Water Utilities  Assets: Current Assets: Pooled Cash and Cash Equivalents Non-Pooled Cash Accounts Receivable Due: from General Fund Total Current. Assets Non-Current Assets: Capital Assets: Plant Equipment & Roads, Net of Accumulated Depreciation Land Total Non-Current Assets Total. Assets Liabilities: Total Liabilities Net Position: Net Investment in Capital Assets Onrestricted Total Net Position  595,387 14,478 609,865  595,387 14,478 609,865  2,614 20,107 22,721 632,586  2,614 20,107 22,721 632,586  22,721 609,865 632,586 632,586  22,721 609,865 632,586 632,586  Total Liabilities and Fund Balances  The accompanying notes are an integral part oft the financial statements.  15    VILLAGE OF SANLEANNA PROPRIETARY FUNDS SEPTEMBER 30, 2022  STATEMENT OF REVENUES, EXPENSES. AND CHANGES IN FUNDNETI POSITION  Total Enterprise Funds  Water Utilities  Operating Revenues Charges for Services: Water & Wastewater Charges Water Tap Fees Meter Deposits Miscellaneous Total Operating Revenues Operating Expenses Water Operator District Fees Repairs & Maintenance Depreciation Electricity Bookkeeper Billing Supplies Meter Reader Meter Refunds Miscellaneous City of Austin Contract City of Austin Water Total Operating Expenses Operating Income (Loss) Transfers In Texpool Changes in Net Position Net Position - Beginning Net Position - Ending  $  149,860 13,803 2,100 4,122 169,885 30,000 6,007 32,036 770 8,315 19,399 1,698 2,240 450 96 5,200 19,596 125,807 44,078 89,449 133,527 499,059 632,586  $  149,860 13,803 2,100 4,122 169,885 30,000 6,007 32,036 770 8,315 19,399 1,698 2,240 450 96 5,200 19,596 125,807 44,078 89,449 133,527 499,059 632,586  $ $  $ $  $ $  $ $  Transfers Out-I Debt Service & Road Improvements  $ $ $ 16  $ $ $  The accompanying notes are an integral part oft the: financial statements.    VILLAGE OF SAN LEANNA PROPRIETARY FUNDS SEPTEMBER30,20.2  STATEMENT OF CASH FLOWS INCREASE (DECREASE): IN CASH AND CASH EQUIVALENTS-  Total Enterprise Funds $  Cash Flows from Operating Activities: Cash Received from Customers Cash Payments to Suppliers Cash Payments to Employees and Contractors Cash Payments for Internal Services Net Cash Provided (Used) by Operating Activities Cash Flows from Non-Capital Financing Activities Cash] Flows from Capital and Related Financing Transfer to General Fund Net Cash Provided (Used) from Capital and Related Financing Activities Net Increase (Decrease) in Cash and Cash Cash and Cash Equivalents at Sept. 30, 2021 Cash and Cash Equivalents at Sept. 30, 2022 Reconciliation of Operating Income (Loss) to Net Cash Provided (Used) by Operating Activities Reconciliation of Operating Income (Loss): Operating Income (Loss) Depreciation Changes in Assets and Liabilities: (Decrease)/lIncrease in Accounts Payable Decrease)lIncrease in Due to/from General Fund (Increase) Decrease in Accounts Receivable Net Cash Provided (Used) by Operating Activities  Water Utilities $  169,885 (75,638) (49,399) 44,848  169,885 (75,638) (49,399) 44,848  $ $ $ $ $ $ $  $ $ $ $ $ $ $  89,449 89,449 134,297 461,090 595,387  89,449 89,449 134,297 461,090 595,387  Equivalents  Total Enterprise Funds $  Water Utilities $  44,078 770  44,078 770  $  44,848  $  44,848  The accompanying notes are an integral part of the financial statements.  17    VILLAGE OF SANLEANNA NOTEST TO FINANCIALSTATEMENTS  SEPTEMBER30,? 2022  NOTE 1-S SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES  A. INTRODUCTION  The Village of San Leanna (The Village) was formed on September 5th, 1970 by an election of its inhabitants which voted in favor of incorporation. The Village operates under an  election Mayor/Council form of government.  B. FINANCIAL, REPORTING ENTITY - BASIS OF PRESENTATION  B. .Govemment-wide financial statements  The goverment-wide financial statements include the statement of net position and the statement of activities. These statements report financial information for the Village as a whole. Individual funds are not displayed but the statements distinguish governmental activities, generally supported by taxes and Village general revenues, from business-type activities, generally financed in whole or in part with fees charged to external customers. The statement of activities reports the expenses of a given function offset by program revenues directly connected with the functional program. A function is an assembly of similar activities and may include portions of a fund or summarize more than one fund to capture the expenses and program revenues associated with a distinct functional activity. Program revenues include charges for services which report fees, fines and forfeitures, and other charges to users of the Village's services. Taxes and other revenue sources not properly included with program revenues are  reported as general revenues. Fund Financial Statements  Fund financial statements are provided for governmental and proprietary funds. Major individual governmental and enterprise funds are reported in separate columns with composite B. 2. MEASUREMENT FOCUS, BASIS OF ACCOUNTING, AND FINANCIAL The financial statements of the Village are prepared in accordance with generally accepted accounting principles (GAAP). The Village's reporting entity applies all relevant Governmental Accounting Standards Board (GASB) pronouncements and applicable Financial Accounting Standards Board (FASB) pronouncements and Accounting Principles Board (APB) opinions issued on or before November 30, 1989, unless they conflict with GASB pronouncements. The Village's reporting entity does not apply FASB pronouncements or APB opinions issued after  columns for non-major funds.  STATEMENT PRESENTATION  November 30, 1989.  18    VILLAGE OF SANI LEANNA NOTES TO] HIMANCIALSTATEMENIS  SEPTEMBER 30, 2022  NOTEI-SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)  The government-wide statements report using the economic resources measurement focus and the accrual basis ofa accounting generally including the reclassification or elimination ofi internal activity (between or within funds). However, internal eliminations do not include utility services provided to Village departments. Proprietary fund financial statements report using this same focus and basis of accounting although internal activity is not eliminated in these statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property tax revenues are recognized in the year Governmental fund financial statements report using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are. recognized when they are both measurable and available. Available means collectible within the current period or soon enough thereafter to pay current liabilities. The Village considers revenues to be available if they are collected within 30 days of the end of the fiscal year. Expenditures are recorded when the related fund liability is incurred, except for general obligation bond principal and interest which Major revenue sources susceptible to accrual include: property taxes, franchise taxes, and investment income. In general, other revenues are: recognized when cash is received. Operating income reported in proprietary fund financial statements includes revenues and expenses related to the primary, continuing operations of the fund. Principal operating revenues for proprietary funds are charges to customers for sales or services. Principal operating expenses are the costs of providing goods and services and include administrative expenses and When both restricted and unrestricted resources are available for use, it is the Village's policy to use restricted resources first, then unrestricted resources as needs. Restricted assets and liabilities payable from restricted assets current in nature are reported with current assets and  for which they are levied.  are reported as expenditures in the year due.  depreciation of capital assets.  current liabilities ini the financial statements. B.3. FUND TYPES AND MAJOR FUNDS  Governmental Funds  The Village reports the following major governmental funds:  19    VILLAGE OF SAN LEANNA NOTEST TOI FINANCIALS STATEMENTS  SEPTEMBER 30, 2022  NOTE: 1-SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)  General Fund - reports as the primary fund of the Village. This fund is used to account for all Debt Service Fund = accounts for the accumulation of financial resources for the payment of  financial resources not reported in other funds. principal and interest on the Village's debt.  Proprietary Funds services.  Water Utilities Fund - accounts for the operating activities of the Village's water utilities  C.A ASSETS, LIABILITIES, AND NET POSITION OR EQUITY  C.1. Cash and Investments  The Village maintains and controls three major cash and investment accounts in which funds of the primary government share. Each fund's portion of aj pool is displayed on its respective balance sheet or statement of fund net assets as "pooled cash and cash equivalents." In addition, non-pooled cash and investments are separately held and reflected in respective funds as "non-pooled cash" and investments, some of which are restricted assets. The Village considers highly liquid investments with an original maturity of three months or less to be cash equivalents. Investments are reported at fair value which is determined using selected bases. Short-term investments are reported at cost, which approximates fair  value.  C.2. Capital Assets and Depreciation  The Village's property, plant, equipment and infrastructure with useful lives of more than one year are stated at historical cost and reported in the government-wide financial statements. Proprietary capital assets are also reported in their respective fund financial statements. The costs of normal maintenance and repairs that do not add to the asset value or materially extend useful lives are not capitalized. Capital assets are depreciated using the straight-line method. When capital assets are disposed, the cost and applicable accumulated depreciation are removed from their respective accounts, and the resulting gain or loss is recorded in operations. Estimated useful lives for depreciable assets are as: follows:  Buildings and road improvements - 50 year life Water utility assets and infrastructure - 20 year life  Mobile equipment, furniture, machinery, and equipment - 5year life  20    VILLAGE OF SAN LEANNA NOTES TOI FINANCIALSTATEMENTS  SEPTEMBER: 30, 2022  NOTEI-SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)  C.3.Long-Term Debt  Ini the government-wide financial statements, outstanding debt is reported as liabilities.  C.4. Fund Equity  The governmental fund financial statements report reserved fund balance for amounts not available for  appropriation legally restricted for specified purposes. D.R REVENUES, EXPENDITURES, AND EXPENSES  Revenues are. recognized in the accounting period in which they become both available and measurable. Licenses and permits, charges for services, fines and forfeits, and miscellaneous revenues are recorded when received in cash. General property taxes, franchise taxes and investment earnings are recorded when they are both measurable and available. Expenditures are recognized in the accounting period in which the fund liability is incurred, if measurable. The proprietary fund is accounted for using the accrual basis of accounting. Its revenues are recognized when they are earned, and its expenses  recognized when they are incurred.  NOTEI-STEWARDSHT, COMPLIANCE AND. ACCOUNTABILITY  B.1. BUDGET POLICY ANDI PRACTICE  The Budget is presented to the Council for review, and public hearings are held to address priorities and the allocation of resources. Once approved, the Council may amend the legally adopted budget when  unexpected modifications are required in estimated revenues and appropriations.  B.2. BASIS OF BUDGETING  The budgets for the operating funds and proprietary fund operations are prepared on the cash and apendturesercumbrancs basis. Revenues are budgeted in the year receipt is expected; and expenditures are budgeted in the year that the applicable expenses are incurred. The Debt Service Fund budget is prepared to provide funding for general obligation debt service when liabilities are due for  payment.  NOTE3-DETAILED NOTES ON FUNDS  3.A. ASSETS  21    VILLAGE OF SAN LEANNA NOTESTO1 FINANCIALSTATEMENTS  SEPTEMBER 30, 2022  NOTE3 -I DETAILED NOTES ON FUNDS (Continued) 3.A.1. DEPOSITS AND INVESTMENTS  Deposits  Custodial credit risk for deposits is the risk that in the event ofal bank failure, the Village's deposits may not be returned or the Village will not be able to recover collateral securities in the possession of an outside party. The Village's policy requires deposits to be 100% secured by collateral valued at market or par, or covered by FDIC insurance. Deposits of the Village's reporting entity are insured or collateralized with securities held by the Village, its agent, or by the pledging financial institution's trust  department or agent in the name of the Village or applicable public trust. As ofs September 30, 2022, the Village had the following investments:  Average Credit Quality/Rating AAA FDIC  Types of Investments Primary Government POOLED INVESTMENTS POOLED INVESTMENTS CitiBank Operating Account Grand Total Deposits and Investments  Fair Value  Cost $ 595,387 $ 88,997  Texpool Local Government Investment Pool $ 595,387  $ 88,997  $ 684,384 $ 684,384  Investment Policies  Credit Risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. Investing is performed in accordance with investment policies adopted by the Council complying with State Statutes and the Village charter. Village funds may be invested in (1) direct obligations of the United States Government, its agencies or instrumentalities to the payment of which the full faith and credit of the government of the United States is pledged, or obligations to the payment of which the full faith and credit of the State ofTexas is pledged; (2) collateralized or insured certificates of deposit and other evidences of deposits at banks, savings banks, and credit unions located in the State when secured by appropriate collateral; (3) money market funds regulated by the Securities and Exchange Commission and which investments consist of the authorized investments (domestic securities) with  restrictions as specified in state law.  22    VILLAGE OF SANI LEANNA NOTES TOI FINANCIALSTATEMENTS  SEPTEMBER 30, 2022  NOTB3-DETAILED NOTES ON FUNDS (Continued)  3.A.2. RECEIVABLES  Receivables consist of revenues earned within the accounting period and not received. Revenues attributable to the year ended September 30, 2022 and received within 30 days after year end consisted  of$20,294.  3.A.3. CAPITAL ASSETS Changes in Capital Assets Primary Government Governmental Activities Balance, September 30, 2021 Increases Decreases  Water Service Project  Water Utility  Land  Fixed. Assets  Totals $2,445,802 $ $ $2,445,802 $1,180,651 77,320 $1,257,971 $1,187,831  $ 6,000 $1,535,356 $904,446 $  Balance, September 30, 2022 $ 6,000 $1,535,356 $ 904,446 $  Accumulated. Depreciation Balance, September 30, 2021 Increases Decreases Balance, September 30, 2022 Governmental Activities Capital Assets, Net Business-Type Activities Balance, September 30, 2021 Increases Decreases  $  547,556 $633,095 $ 581,846 $676,125 $ 953,510 $228,321 $  34,290  43,030  $ 6,000 $20,107 $  $ $ $ $  $419,954 $ 440,061 $419,954 $ 440,061 $416,570 $ 416,570 770 $ $ $417,340 $ 417,340 $ 2,614 $ 22,721  $ $  Balance, September 30, 2022 $2 20,107 $  Accumulated Depreciation Balance, September 30, 2021 Increases Decreases Balance, September 30, 2022 $ Business-Type. Activities Capital Assets, Net Primary Government  $  $ $  770  $ 20,107 $  $ 26,107 $ 953,510 $228,321 $ 2,614 $1,210,552  23    VILLAGE OF SANLEANNA NOTESTOI FINANCIALSTATEMENTS  SEPTEMBER: 30, 2022  NOTE3 -DETAILED NOTES ON FUNDS (Continued)  3.B. LIABILITIES .B.1.LONG-TERM DEBT  The Village of San Leanna authorized and issued Water System Revenue Refunding Bonds, Series 2014, in the amount of $485,000 in order to refinance the Water Service Project. The project consists of the construction, acquisition and installation of additions, improvements and extensions to the Village Water System and related services. Each bond shall bear the interest rate of2.89% per annum, payable semiannually on February 15th and August 15th of each year. The loan term is 25 years, although prepayments toward principal can be made after  the initial 10 year period oft the bonds.  Water System Revenue Refunding Bonds, Series 2014, in the amount of $485,000, annual payments of $26,752 to $44,104, including interest at 2.89%, matures 08/15/2028  $0  The debt service requirements on the above long-term debt are as follows:  This loan was paid offi in full in October of2020.  3.C.] PROPERTY TAXES  The Appraisal District ofT Travis County was created by authority of Senate Bill 621 known as the Property Tax Code, of the 66th Legislature of the State of Texas. The District is controlled by a Board of Directors, whose members are elected by the governing bodies of various taxing units within Travis County. Under the Property Tax Code, the. Appraisal District is required to appraise all real and personal property in Travis County and may provide other services such as preparation of tax rolls and billings and tax collection services. A taxing unit may assess and collect taxes only from the appraisal roll prepared by the Appraisal District. Taxing units are charged aj proportionate amount oft the District's budget for services rendered tot the taxing unit. The Village of San Leanna has contracted with the Appraisal District of Travis County, Texas to collect ad The 2021/2022 adjusted tax base for the Village of San Leanna was $80,033,227 with an effective tax rate of  valorem taxes on behalf oft the Village.  2298/$100, and aj proposed tax rate of. 2498/$100, resulting inj property taxes of$199,923.  Property taxes receivable at 9/30/22 consisted of $5,816, with the current portion $2,342 and delinquent  $3,474.  24    VILLAGE OF SAN LEANNA NOTEST TOJ FINANCIALSTATEMENTS  SEPTEMBER 30, 2022  3.D. INTERFUND RECEIVABLES AND: PAYABLES  Individual interfund receivable and payable balances at September 30, 2022 were:  Due from Other Funds  Due to Other Funds $ $ $  General Fund Water Fund  $ $ $  NOTE4- CONTINGENCIES  As of September 30, 2022, the Village of San Leanna did not have any pending litigation or potential non-  disclosed liabilities that would have a material effect on these financial statements.  NOTE 5-SUBSEQUENT) EVENTS  Nos subsequent events of audit significance were noted for the fiscal year ended September 30, 2022.  25    VILLAGEOESANI LEANNA  STATEMENT OF REVENUES. EXPENDITURES. AND CHANGES INE FUND) BALANCEI BUDGET AND ACTUAL (NON-GAAP] BUDGETARYI BASIS) GENERALFUND FOR THE YEARI ENDEDS SEPTEMBER: 30, 2022  Budgeted Amounts Original $ 195,000 15,000 200 5,000 107,960 227,477 550,637 26,556 38,867 3,130 3,000 6,200 30,000 800 6,000 3,200 8,700 1,000 825 5,000 1,000 13,000 100 2,500 5,000 6,000 50,000 300,000 1,500 32,000 1,700 3,000 $ 549,078 $ 1,559 $ 1,559 $ 45,469 $ 47,028  Variance with) Budget Positive (Negative)  Final $ 195,000 15,000 200 5,000 107,960 227,477 550,637 26,556 38,867 3,130 3,000 6,200 30,000 800 6,000 3,200 8,700 1,000 825 5,000 1,000 13,000 100 2,500 5,000 6,000 50,000 300,000 1,500 32,000 1,700 3,000 549,078 1,559 1,559 45,469 47,028  Actual $ 199,516 $ 15,181 4,297 3,120 6,593 63,062 (89,449) 202,320 38,800 3,112 908 5,374 29,953 805 6,000 2,976 8,241 774 786 3,265 2,973 11,990 53 2,456 4,875 5,996 5,863 1,500 18,031 1,081 2,980 158,792 $ 43,528 43,528 45,469 88,997  Revenues: Property" Taxes Franchise' Taxes Interest Earnings Building Permits Miscellaneous Coronavirus grant Transfers Totall Revenues Expenditures: Road Maintenance Secretary TMLI Insurance Legai Taxes Mowing/Trim Publicl Information Audit Security Lights Officee expenses Org. Membershipl Dues Appraisals Building Inspections Miscellaneous interest expense Treel Project Road Improvements Council expenses Public. Affairs Community Center Advisor Debt Service/Transfer Flood Prevention Capital Assets Health Dept. Contract Engineer Public Safety Employee reimburse Total Expenditures (Under). Expenditures Net Changes in) Fund Balances Fund) Balances Beginning Fundl Balances- Ending  4,516 181 4,097 (1,880) 6,593 (44,898) (316,926) (348,317) 26,556 67 18 2,092 826 47 (5) 224 459 226 39 1,735 (1,973) 1,010 47 44 125 4 44,137 300,000 13,969 619 20 390,286 41,969  $ $  $ $  $  $ $ $ $ $ 26  $ $ $ $ $    VILLAGE OF SANLEANNA  STATEMENT OF REVENUES, EXPENDITURES AND CHANGES! INI FUND BALANCE BUDGET AND ACTUAL (NON-GAAP BUDGETARY BASIS) PROPRIETARY FUND  FOR THE YEAR ENDED SEPTEMBER 30, 2022  Budgeted Amounts Final $ 125,000 9,600 1,000 100 15,843 $ 151,543  Variance with Finall Budget Positive (Negative) $  Original $ 125,000 9,600 1,000 100 15,843 $ 151,543  Actual $ 149,860 13,803 2,100 4,122 5 169,885 $  Revenues: Water Billings Water Tapl Fees Meter Dep/Connect Fees Miscellaneous Transfer from Reserve Total Revenues Expenditures: Current: Water Operator District Fees Maintenance/Repair Electricity Bookkeeper Billing Supplies Meter Reader Meter Refunds Miscellaneous City of Austin Contract City of Austin Water Debt Service Depreciation Total Expenditures Excess (Deficiency) of Revenues Over (Under) Expenditures Net Changes in Fund Balances Transfers  24,860 4,203 1,100 4,022 (15,843) 18,342  $ 30,000 6,050 50,000 9,000 19,433 1,900 2,560 1,000 100 6,500 25,000 $ 151,543  $ 30,000 6,050 50,000 9,000 19,433 1,900 2,560 1,000 100 6,500 25,000 $ 151,543  $ 30,000 6,007 32,036 8,315 19,399 1,698 2,240 450 96 5,200 19,596 770 $ - 125,807 $  $  43 17,964 685 34 202 320 550 4 1,300 5,404 (770) 25,736  $ $  $ $ $ 499,059 6 499,059 27  $ 44,078 $ $ 44,078 89,449 499,059 632,586  44,078  Fund Balances. - Beginning $ 499,059 Fund Balances Ending $ 499,059    Donald. Allman, CPA, PC 4749 Williams Dr., Ste. 322 Georgetown, Texas 78633 Fmail- alimmnh-pmalimancna. com  The Accounting Fim pf Donald L. Allman, GPA  DL.  CERTIFIED PUBLIC. ACCOUNTANT  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  To the Honorable Mayor and Members oft the Village Council  Village of San Leanna, Texas  We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of Village of San Leanna, Texas, as of and for the year ended September 30, 2022, and the related notes to the financial statements, which collectively comprise Village of San Leanna, Texas'  basic financial statements, and have issued our report thereon dated September 18,2023.  Internal Control Over Financial Reporting  In planning and performing our audit of the financial statements, we considered Village of San Leanna, Texas' internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of Village of San Leanna, Texas' internal control. Accordingly, we do not express an opinion on the effectiveness of Village of San Leanna, Texas' internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or, significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be  than a material weakness, yet important enough to merit attention byt those charged with governance.  material weaknesses. However, materialweaknesses may exist that have not been identified.  Compliance and Other Matters  As part of obtaining reasonable assurance about whether Village of San Leanna, Texas' financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or  other matters that are required to be reported under Government. Auditing Standards.  Purpose of this Report  The purpose oft this report is solely to describe the scope of our testing of internal control and compliance and the results oft that testing, and not to provide an opinion on the effectiveness of the entity's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government, Auditing Standards in considering the entity's internal control and compliance. Accordingly, this communication is not suitable for any other purpose.  Donald L. Georgetown, TX RONre September 18, 2023  PC  28