Audit 321016

Title: Note 3 - Program Costs Accounting Policies: Note 1 - Basis of Accounting This schedule is prepared on the same basis of accounting as the City of Deer Park’s financial statements. The City of Deer Park uses cash basis of accounting. De Minimis Rate Used: N Rate Explanation: Note 2 - Federal Indirect Rate The City of Deer Park has not elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The amounts shown as current year expenditures represent only federal award portion of the program costs. Entire program costs, including the City of Deer Park’s portion, are more than shown. Such expenditures are recognized following, the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement.