Notes to SEFA
Accounting Policies: NOTE 1: BASIS OF PRESENTATIONThe accompanying Schedule of Expenditures of Federal and State Awards presents the activity of all applicable federal and state awards of Howard County, Texas for the year ended September 30, 2022. The County's reporting entity is defined in Note 1 of the financial statements. Federal and Texas State awards are included on the Schedule of Expenditures of Federal and State Awards. The information is presented in accordance with the requirements of the Uniform Guidance and the State of Texas Single Audit Circular. Because the schedule presents only a selected portion of the operations of the County, it is not intended to and does not present the financial position or change in net position of the County.NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESExpenditures reported in the accompanying Schedule of Expenditures of Federal and State Awards are reported on the modified accrual basis of accounting. The modified accrual basis of accounting is described in Note 1 of the financial statements. Such expenditures are recognized following the cost principles contained in the Uniform Guidance and the State of Texas Single Audit Circular, wherein certain types of expenditures are not allowed or are limited as to reimbursement.The format for the Schedule of Expenditures of Federal and State Awards has been prescribed by the Uniform Guidance and the State of Texas Single Audit Circular. Such format includes revenue and expenditures recognized in Howard County, Texas financial statements. The County has not elected to use the 10 percent de minimis indirect cost rate as allowed. There are no subrecipients of the federal or state awards.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.