Audit 297710

Title: NOTE 1 – SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: Basis of presentation – The schedules of expenditures of federal and state awards (the schedules) are prepared on the accrual basis of accounting. The information in these schedules is presented in accordance with the requirements of Title 2 U. S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) and Texas Grant Management Standards. Federal and state expenditures include allowable costs funded by federal and state grants. Allowable costs are subject to the cost principles of the Uniform Guidance and the Texas Grant Management Standards and include costs that are recognized as expenses in The Council’s financial statements in conformity with generally accepted accounting principles. The Council has not elected to use the 10% de minimus cost rate for indirect costs. The Council does not have any subrecipients. Because the schedules present only a selected portion of the operations of The Council, they are not intended to and does not present the financial position, changes in net assets, or cash flows of The Council. De Minimis Rate Used: N Rate Explanation: The Auditee has elected not to use an indirect cost rate. Basis of presentation – The schedules of expenditures of federal and state awards (the schedules) are prepared on the accrual basis of accounting. The information in these schedules is presented in accordance with the requirements of Title 2 U. S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) and Texas Grant Management Standards. Federal and state expenditures include allowable costs funded by federal and state grants. Allowable costs are subject to the cost principles of the Uniform Guidance and the Texas Grant Management Standards and include costs that are recognized as expenses in The Council’s financial statements in conformity with generally accepted accounting principles. The Council has not elected to use the 10% de minimus cost rate for indirect costs. The Council does not have any subrecipients. Because the schedules present only a selected portion of the operations of The Council, they are not intended to and does not present the financial position, changes in net assets, or cash flows of The Council.