Notes to SEFA
Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal grant activityof the City of Twin Falls, Idaho and is presented on the modified accrual basis of accounting.The information in the schedule is presented in accordance with the requirements of the UniformGuidance. Therefore, some amounts presented in this schedule may differ from amountspresented in, or used in the preparation of the financial statements. The City received federalawards both directly from federal agencies and indirectly through pass-through entities. Federalfinancial assistance provided to a subrecipient is treated as expenditure when it is paid to thesubrecipient. Governmental fund types account for the Citys federal grant activity. Therefore, expenditures inthe schedule of expenditures of federal awards are recognized on the modified accrual basis-whenthey become a demand on current available financial resources. The Citys summary ofsignificant accounting policies is presented in Note 1 in the Citys basic financial statements.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.