Notes to SEFA
Title: General
Accounting Policies: The accompanying SEFA is presented using the modified accrual basis of accounting, which is described in Note A, 3 of the District’s notes to the financial statements. 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: Y
Rate Explanation: The District 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 Awards (SEFA) present the federal grant activity for the Hidalgo County Drainage District No. 1 (the District) for the year ended December 31, 2023. The
reporting entity is defined in Note A, 1 to the District’s basic financial statements. 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 (Uniform Guidance). Because the SEFA presents only a selected portion of the operations of the
District, it is not intended and does not present the financial position, changes in net position, or cash flows of the District.
Title: Relationship to Federal Financial Reports
Accounting Policies: The accompanying SEFA is presented using the modified accrual basis of accounting, which is described in Note A, 3 of the District’s notes to the financial statements. 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: Y
Rate Explanation: The District has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance.
Amounts reported in the accompanying schedule may not agree with the amounts reported in the related Federal financial reports filed with the grantor agencies because of accruals made in the schedule which will be included in future reports filed with agencies.