Notes to SEFA
Title: Contingent Liabilities:
Accounting Policies: The accompanying schedule of expenditures of federal and state awards includes the federal and state grant activity of Brazos Transit District (BTD). The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations, Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (the Uniform Guidance) and the State of Texas Single Audit Circular. Because the schedule only presents a selected portion of the operations of BTD, it is not intended to and does not present the financial position, changes in net position, or cash flows of BTD. BTD utilizes fund accounting for each of its grants. A separate fund is maintained for each grant. Expenditures reported on the Schedule of Expenditures of Federal and State Awards are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
BTD participates in a number of federal and state assisted programs. These programs are audited in accordance with Government Auditing Standards, the Single Audit Act Amendments of 1996, and the State of Texas Single Audit Circular, if applicable, in accordance with the required levels of Federal Financial Assistance. Audits of prior years have not resulted in any significant disallowed costs; however, grantor agencies may provide for further examinations. Based on prior experience, management believes that further examinations would not result in any significant disallowed costs.