Audit 304080

Title: BASIS OF PRESENTATION Accounting Policies: EXPENDITURES REPORTED ON THE SCHEDULE ARE REPORTED ON THE MODIFIED 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 CITY OF SEADRIFT, TEXAS DID NOT ELECT TO USE 10% DE MINIMIS INDIRECT COST RATE AS ALLOWED UNDER THE UNIFORM GUIDANCE. TJE ACCOMPANYING SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS (THE SCHEDULE) INCLUDES THE FEDERAL AWARD ACTIVITY OF CITY OF SEADRIFT, TEXAS UNDER PROGRAMS OF THE FEDEAL GOVERNMENET FOR THE YEAR ENDED SEPTEMBER 30, 2023. THE INFORMATION IN THIS SCHEDULE IS PRESENTED IN ACCOURDANCE 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 (UNIFORM GUIDANCE). BECAUSE THE SCHEDULE PRESENTS ONLY A SELECTED PORTION OF THE OPERATION OF CITY OF SEADRIFT, TEXAS, IT IS NOT INTENDED TO BE AND DOES NOT PRESESNT THE FINANCIAL POSITION, CHANGES IN NET ASSETS, OR CASH FLOWS OF THE CITY OF SEADRIFT, TEXAS.

Title: PRIOR YEAR EXPENDITURES Accounting Policies: EXPENDITURES REPORTED ON THE SCHEDULE ARE REPORTED ON THE MODIFIED 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 CITY OF SEADRIFT, TEXAS DID NOT ELECT TO USE 10% DE MINIMIS INDIRECT COST RATE AS ALLOWED UNDER THE UNIFORM GUIDANCE. OF THE $3,594,746 IN FEDERAL EXPENDITURES LISTED ON THE SCHEDULE, $27,347 WERE EXPENDED DURING THE FISCAL YEAR ENDED 2022.