Notes to SEFA
Accounting Policies: The Town of Little Elm, Texas (the Town) accounts for most of its Federal and State grants in Special Revenue Funds. Special Revenue Funds are governmental funds which can be used to account for resources restricted to, or committed for, specific purposes by a grantor. Generally, unused balances are returned to the grantor at the close of specified project periods. The accompanying Schedule of Expenditures of Federal and State Awards includes the federal grant and state grant activity of the Town and is presented on the modified accrual basis of accounting as described in Note 1 to the basic financial statements for the year ended September 30, 2022. Amounts reported in the accompanying schedule may not agree with amounts reported in the related federal and state financial reports with grantor agencies because of accruals which would be included in the subsequent report file with the agencies. The Town elected not to use the 10% de minimis indirect cost rate as allowed in the Uniform Guidance, section 414.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.