Notes to SEFA
Title: Note 1 ‐ General
Accounting Policies: Note 2 ‐ Basis of Accounting
The accompanying schedule of expenditures of federal and state awards is presented using the modified accrual basis of
accounting. Expenditures are recognized when the related fund liability is incurred. Federal and state grants 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 revenue until earned.
De Minimis Rate Used: N
Rate Explanation: Note 4 – De Minimis Indirect Cost Rate
The County has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance.
The accompanying schedule of expenditures of federal and state awards presents the activity of all federal and state financial
assistance programs of Ector County, Texas (the “County”). The County’s reporting entity is defined in Note 1 to the County’s
basic financial statements. Federal and state financial assistance expended from funds received from federal and state
agencies as well as federal and state financial assistance passed through other government agencies are included in the
respective schedule. The value of federal and state awards expended in the form of non‐cash assistance is zero. The value
of loans or loan guarantees outstanding at the year ended September 30, 2023 is zero.
Title: Note 3 ‐ Relationship to Basic Financial Statements
Accounting Policies: Note 2 ‐ Basis of Accounting
The accompanying schedule of expenditures of federal and state awards is presented using the modified accrual basis of
accounting. Expenditures are recognized when the related fund liability is incurred. Federal and state grants 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 revenue until earned.
De Minimis Rate Used: N
Rate Explanation: Note 4 – De Minimis Indirect Cost Rate
The County has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance.
Federal and state financial assistance revenues are reported as intergovernmental revenues in the County’s basic financial
statements. The federal and state financial assistance revenues and expenditures are reported in the General Fund, Capital
Projects Fund, and in Special Revenue Funds.