Notes to SEFA
Accounting Policies: NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESBasis of PresentationThe accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grantactivity of the City of Palmview, Texas. The information in the Schedule is presented in accordance withthe requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform AdministrativeRequirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance).Therefore, some amounts may differ from amounts presented in, or used in the preparation of the basicfinancial statements.Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Theseexpenditures are recognized following the cost principles contained in the Uniform Guidance, whereincertain types of expenditures are not allowable or are limited as to reimbursement.NOTE 2: INDIRECT COST RATEThe City has elected not to use the 10 percent de minimis indirect cost rate allowed under the UniformGuidance.NOTE 3: FEDERAL LOANS AND LOAN GUARANTEESDuring the fiscal year ended September 30, 2022, the City had no outstanding federal loans payable orloan guarantees.NOTE 4: SUB-RECIPIENTSDuring the fiscal year ended September 30, 2022, the City did not have any sub-recipients.NOTE 5: NONCASH AWARDSDuring the fiscal year ended September 30, 2022, the City did not receive any non-cash assistance.NOTE 6: FEDERALLY FUNDED INSURANCEDuring the fiscal year ended September 30, 2022, the City had no outstanding federally funded insurance.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.