Notes to SEFA
Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) includes the federal grant
activity of the County 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 Title 2 U.S. Code of Federal
Regulations (CFR) 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 operations
of the County, it is not intended and does not present the financial position, changes in net position/fund
balance or cash flows of the County. Galveston County, Texas, accounts for federal funding using the modified accrual method of accounting. 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 liability is
incurred, if measurable, except for certain compensated absences, claims and judgments, which are
recognized when the obligations are expected to be liquidated with expendable available financial resources.
Equipment purchases for grant purposes are treated as expenditures in the Schedule of Expenditures of
Federal Awards. Federal grant funds are considered to be earned to the extent of qualifying expenditures
made under the provisions of the grant, and, accordingly, when such funds are received, they are recorded as
unearned revenue until earned. Generally, unused balances are returned to the grantor at the close of
specified project periods.
De Minimis Rate Used: N
Rate Explanation: The County has elected not to use the 10% de minimis indirect cost rate as allowed in the Uniform Guidance.