Notes to SEFA
Accounting Policies: The accompanying schedules of expenditures of federal and state awards include the grant activity of the
County and is presented on the modified accrual basis of accounting. The modified accrual basis of
accounting is used for the Governmental Fund types. This basis of accounting recognizes revenue in the
accounting period in which they become susceptible to accrual, i.e., both measurable and available, and
expenditures in the accounting period in which the fund liability is incurred, if measurable.
Federal and state grant funds are considered to be earned to the extent of expenditures made under the
provisions of the grant, and accordingly, when such funds are received, they are recorded as unearned
revenue until earned.
The information in these schedules is presented in accordance with the requirements of the State of Texas
Federal grant funds are considered to be expended as purchases are made under the provisions of the
grant, and accordingly, may be in advance of the reimbursements received.
Federal expenditures are recorded when expenses are incurred, not when advances from loan proceeds
are made.
The District has not elected to use the 10% de minimis indirect cost rate as allowed by Uniform
Guidance.
De Minimis Rate Used: N
Rate Explanation: The District has not elected to use the 10% de minimis indirect cost rate as allowed by Uniform
Guidance.