Notes to SEFA
Accounting Policies: The accrual basis of accounting is used for the auditee. 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. 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 deferred expenditures until earned.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.