Notes to SEFA
Title: BASIS OF PRESENTATION
Accounting Policies: Modified Accrual Basis of Accounting
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate.
The accompanying schedule of federal awards (the “Schedule”) includes the federal award activity of
Douglas County Fire District No. 2 under programs of the federal government for the year ended June 30,
2021. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S.
Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit
Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected
portion of the operations of Douglas County Fire District No. 2, it is not intended to and does not present
the financial position, changes in net position, or cash flows of Douglas County Fire District No. 2.
Title: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Accounting Policies: Modified Accrual Basis of Accounting
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate.
Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such
expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein
certain types of expenditures are not allowable or are limited as to reimbursement.
Title: INDIRECT COSTS RATE
Accounting Policies: Modified Accrual Basis of Accounting
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate.
Douglas County Fire District No. 2 has elected to use the 10 percent de minimis indirect cost rate allowed
under the Uniform Guidance.