Texoma Council of Governments (TCOG) Annual Financial Report including financial statements and supplementary information for fiscal year ended April 30, 2026, is submitted for your review and acceptance. This report was prepared in accordance with TCOG’s bylaws. We believe the data presented is accurate in all material aspects; that it is presented in a manner designed to fairly set forth the financial position and results of TCOG operations as measured by the financial activity of its various grants and contracts; and, that all disclosures necessary to enable the reader to gain maximum understanding of TCOG’s financial affairs and to satisfy Federal and State requirements of applicable grants are included. Standards issued by the Office of Management and Budget Uniform Guidance and GASB Statement No. 34, Basic Financial Statements – and Management’s Discussion and Analysis – for State and Local Governments, as amended and interpreted, as of April 30, 2026, were followed in the operation and audit of TCOG. Also, the Texas Grant Management System requirements were followed in the preparation of this report.

Accounting System and Budgetary Control

TCOG’s accounting records are maintained on a modified accrual basis, with revenues recorded when susceptible to accrual and expenditures recorded when liabilities are incurred, if measurable. This policy is implemented by generally accepted accounting principles and the Common Rule.

Budgetary amounts reported on the schedule of revenues and expenditures in memorandum form are monitored monthly for variances by TCOG staff. Variances are dealt with on an individual basis, according to contractual requirements of the specific grant or contract.

Internal Controls

In developing and improving TCOG’s accounting system, consideration is given to the adequacy of internal controls. Internal controls are designed to protect TCOG assets, prevent fraud and to insure economy and efficiency of operations within limitations. Internal controls are developed to assure management, and funding sources, of the integrity of the accounting and reporting systems.

Reporting Entity and Services

TCOG operations are controlled by grant, or contract arrangements, with the United States of America and the State of Texas. For the fiscal year ended April 30, 2026, the largest sub-grantee of TCOG is Tri-County Senior Nutrition Project (Tri-County). Tri-County contracts with an independent public accounting firm for an annual audit of its operations.

Functional Activities

During the fiscal year ended April 30, 2026, TCOG, through grants and contracts, operated the Area Agency on Aging of Texoma, Community and Economic Development and Planning Activities, Criminal Justice Planning, Homeland Security Planning, Emergency 911, Weatherization Assistance Program, Comprehensive Energy Assistance Program, Section 8 Housing, Public Housing Authorities of eighteen cities, and other programs for the Texoma Region.

Cash Management

Cash maintained in the general account is not invested in interest bearing instruments because of the restrictions placed on federal funds by the United States Treasury. Funds received from local units of government for matching grants are deposited into an interest bearing account, including a deposit in TexPool, a division of the Texas State Treasury. The interest earned on local funds is used to match grant requirements, reduce future local government contributions, and satisfy any costs not allowed by grant conditions.

Fixed Assets

Fixed assets are recorded at cost from grant funds or local funds. Fixed assets purchased from local funds are depreciated and grants are charged accordingly in conformity with Office of Management and Budget Uniform Guidance.

Annual Audit

TCOG’s bylaws require than an annual audit be made of its financial accounts and transactions for the preceding fiscal year. In 1997, the Office of Management and Budget (OMB) revised Circular A-133 to include units of local government. This circular requires that grantors of the United States of America perform audits which meet the requirements of the Single Audit Act Amendments of 1996. In December 2014 the OMB implemented the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, commonly referred to as the Uniform Guidance, which synthesizes and supersedes guidance from previous OMB circulars. In accordance with Uniform Guidance requirements, the Annual Audit Report is contained herein for your review and consideration.

Certification of Indirect Cost Percentage

The Executive Director and Finance Director certify that based upon the audited financial data, TCOG’s indirect cost for fiscal year ended April 30, 2026, was 4.72% of total expenditures and did not exceed 15% of total expenditures, as defined by The Local Government Code, Chapter 391, 586.(f)(1).

Overview

The Annual Audit Report contains an unmodified opinion.  There are no significant control deficiencies, questioned or disallowed costs, or material weaknesses.  The audit firm has not issued a separate management letter that would need to be provided to the public or funding agencies.

We would like to express our appreciation to everyone associated with the preparation of this Annual Audit Report. We would also like to thank the Members of the Governing Body for their direction and support in the financial operations of Texoma Council of Governments.

SHERMAN, August 13, 2026 – The Texoma Council of Governments has been awarded funding through the Texas Veterans Commission’s Fund for Veterans’ Assistance Grant Program to expand financial assistance and supportive services for veterans and surviving spouses across the Texoma region.

The grant will enable TCOG’s Area Agency on Aging to provide direct financial assistance and coordinated support to economically vulnerable older veterans and surviving spouses residing in Cooke, Fannin, and Grayson Counties.  Eligible assistance may include help with rent or mortgage payments, utilities, groceries, transportation, funeral expenses, and restorative dental care.

“Veterans have given so much in service to our country and we want to make sure that service is honored by helping them remain safe, stable and independent in their own communities,” said Cara Lavender, TCOG’s Aging Services Director. “This grant gives us another important tool to respond when an older veteran or surviving spouse is facing a financial crisis and needs assistance to get back on stable ground.”

The program will place particular emphasis on veterans who are low-income, disabled or homebound, lack family support, or live in rural areas where access to assistance can be more difficult.  TCOG’s Area Agency on Aging has long worked to promote independence and coordinate services for older adults throughout the three-county region.

“We are grateful to the Texas Veterans Commission for recognizing the needs of veterans in the Texoma region and for investing in a local solution,” said Eric Bridges, TCOG Executive Director. ”  TCOG’s mission in fundamentally about improving quality of life, and helping veterans who have served our nation is a natural extension of that commitment.  This partnership allows us to bring resources directly to the people and communities that need them most.”

TCOG is a voluntary association of local governments serving Cooke, Fannin and Grayson Counties. Established in 1968, TCOG provides a broad range of human services, community and economic development, public safety, aging, housing and other programs designed to improve the quality of life throughout the Texoma region.

For Immediate Release

2027 TxCDBG Regional Project Priorities

SHERMAN, June 22, 2026 – Eric Bridges, Executive Director of Texoma Council of Governments (TCOG) announced today an invitation to local elected officials, community stakeholders, and residents to participate in a public meeting to help establish regional project priorities for the 2027 Texas Community Development Block Grant (TxCDBG) Program administered by the Texas Department of Agriculture (TDA). The meeting is scheduled for Thursday, July 9, 2026 at 5:30p in the Eisenhower Room on the first floor of the TCOG building, 1117 Gallagher Drive, Sherman, TX.

Mr. Bridges stated, “The meeting will provide an opportunity for participants to offer input on the types of community development projects that should receive regional priority consideration during the upcoming funding cycle.”

The Texoma Council of Governments is a voluntary association of the local governments in Cooke, Fannin, and Grayson Counties. Established in 1968, the Texoma Council of Governments promotes economy and efficiency in the coordinated planning and development of the tri-county region through its community and economic development activities. Either directly, or through contractors, the Council provides housing, utility assistance, and weatherization services for low-income citizens in the region and assists the elderly through a variety of Area Agency on Aging programs. The Council also facilitates the delivery of grant funding for homeland security and criminal justice.

The event is open to all residents of Cooke, Grayson, and Fannin Counties – so gather those household chemicals, old paint, and cleaners and dispose of them safely and responsibly.