Title: NOTE 2
Accounting Policies: 1. The accompanying Schedule Of Expenditures Of Federal Awards (Schedule) includes the federal grant
activity of the City of Groves, Texas under programs of the Federal government for the year ended
September 30, 2023. The information in this Schedule is presented in accordance with the requirements of
the Office of Management and Budget (OMB) Part 200, Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards. Because the Schedule presents only a selected
portion of the operations of the City, it is not intended to and does not present the financial position,
changes in net position or cash flows of the City.
De Minimis Rate Used: N
Rate Explanation: There was no de minimis cost rate used.
2. Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. The
information in this Schedule is presented in accordance with the requirements of OMB Circular Part 200,
Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards.
Therefore, some amounts presented in this Schedule may differ from amounts presented in, or used in the preparation of the general purpose financial statements.
Title: NOTE 3
Accounting Policies: 1. The accompanying Schedule Of Expenditures Of Federal Awards (Schedule) includes the federal grant
activity of the City of Groves, Texas under programs of the Federal government for the year ended
September 30, 2023. The information in this Schedule is presented in accordance with the requirements of
the Office of Management and Budget (OMB) Part 200, Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards. Because the Schedule presents only a selected
portion of the operations of the City, it is not intended to and does not present the financial position,
changes in net position or cash flows of the City.
De Minimis Rate Used: N
Rate Explanation: There was no de minimis cost rate used.
3. The accounting and financial reporting treatment applied to a fund is determined by its measurement
focus. The Governmental Fund types are accounted for using a current financial resources measurement
focus. With this measurement focus, only current assets and current liabilities generally are included on
the balance sheet. Operating statements of this fund present increases (i.e., revenues and other financing
sources) and decreases (i.e., expenditures and other financing uses) in net current assets.
The modified accrual basis of accounting is used for the Governmental Fund Types and Agency Funds. This
basis of accounting recognizes revenues 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, except for unmatured interest on General Long-Term Debt, which is
recognized when due, and certain compensated absences and claims and judgments, which are recognized
when the obligations are expected to be liquidated with expendable available financial resources.
The accrual basis of accounting is used for the Proprietary Fund Types.
Federal 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 revenues until
earned.
Title: NOTE 4
Accounting Policies: 1. The accompanying Schedule Of Expenditures Of Federal Awards (Schedule) includes the federal grant
activity of the City of Groves, Texas under programs of the Federal government for the year ended
September 30, 2023. The information in this Schedule is presented in accordance with the requirements of
the Office of Management and Budget (OMB) Part 200, Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards. Because the Schedule presents only a selected
portion of the operations of the City, it is not intended to and does not present the financial position,
changes in net position or cash flows of the City.
De Minimis Rate Used: N
Rate Explanation: There was no de minimis cost rate used.
4. The City of Groves, Texas does not record indirect costs for any of its Federal Programs.
Title: NOTE 5
Accounting Policies: 1. The accompanying Schedule Of Expenditures Of Federal Awards (Schedule) includes the federal grant
activity of the City of Groves, Texas under programs of the Federal government for the year ended
September 30, 2023. The information in this Schedule is presented in accordance with the requirements of
the Office of Management and Budget (OMB) Part 200, Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards. Because the Schedule presents only a selected
portion of the operations of the City, it is not intended to and does not present the financial position,
changes in net position or cash flows of the City.
De Minimis Rate Used: N
Rate Explanation: There was no de minimis cost rate used.
5. The period of availability for federal grant funds for the purpose of liquidation of outstanding obligations
made on or before the ending date of the federal project period extended 90 days beyond the federal
project period ending date or as specified in a program regulation, in accordance with provisions in Office
of Management and Budget (OMB) Part 200, Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards – Section 200.343 Closeout.