Notes to SEFA
Title: NOTE A – BASIS OF PRESENTATION
Accounting Policies: (1) Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance and the State of Texas Single Audit Circular and the Texas Grant Management Standards (TxGMS), wherein certain types of expenditures are not allowable or are limited as to reimbursement.
(2) Workforces Solutions for South Texas has elected to use the 10 percent de minimis indirect cost rate with the exception of the programs that the Workforce Solutions for South Texas submitted cost allocation plans as allowed under the Uniform Guidance and the State of Texas Single Audit Circular and the Texas Grant Management Standards (TxGMS).
De Minimis Rate Used: N
Rate Explanation: (2) Workforces Solutions for South Texas has elected to use the 10 percent de minimis indirect cost rate with the exception of the programs that the Workforce Solutions for South Texas submitted cost allocation plans as allowed under the Uniform Guidance and the State of Texas Single Audit Circular and the Texas Grant Management Standards (TxGMS).
The accompanying schedule of expenditures of federal and state awards (the Schedule) includes the federal and state awards activity of Workforce Solutions for South Texas under programs of the federal and state government for the year ended June 30, 2024. 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) and the State of Texas Single Audit Circular and the Texas Grant Management Standards (TxGMS). Because the Schedule presents only a selected portion of the operations of Workforce Solutions for South Texas, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Workforce Solutions for South Texas.
Title: NOTE B—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Accounting Policies: (1) Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance and the State of Texas Single Audit Circular and the Texas Grant Management Standards (TxGMS), wherein certain types of expenditures are not allowable or are limited as to reimbursement.
(2) Workforces Solutions for South Texas has elected to use the 10 percent de minimis indirect cost rate with the exception of the programs that the Workforce Solutions for South Texas submitted cost allocation plans as allowed under the Uniform Guidance and the State of Texas Single Audit Circular and the Texas Grant Management Standards (TxGMS).
De Minimis Rate Used: N
Rate Explanation: (2) Workforces Solutions for South Texas has elected to use the 10 percent de minimis indirect cost rate with the exception of the programs that the Workforce Solutions for South Texas submitted cost allocation plans as allowed under the Uniform Guidance and the State of Texas Single Audit Circular and the Texas Grant Management Standards (TxGMS).
(1) Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance and the State of Texas Single Audit Circular and the Texas Grant Management Standards (TxGMS), wherein certain types of expenditures are not allowable or are limited as to reimbursement.
(2) Workforces Solutions for South Texas has elected to use the 10 percent de minimis indirect cost rate with the exception of the programs that the Workforce Solutions for South Texas submitted cost allocation plans as allowed under the Uniform Guidance and the State of Texas Single Audit Circular and the Texas Grant Management Standards (TxGMS).
Title: NOTE C – SUB-RECIPIENT AWARDS
Accounting Policies: (1) Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance and the State of Texas Single Audit Circular and the Texas Grant Management Standards (TxGMS), wherein certain types of expenditures are not allowable or are limited as to reimbursement.
(2) Workforces Solutions for South Texas has elected to use the 10 percent de minimis indirect cost rate with the exception of the programs that the Workforce Solutions for South Texas submitted cost allocation plans as allowed under the Uniform Guidance and the State of Texas Single Audit Circular and the Texas Grant Management Standards (TxGMS).
De Minimis Rate Used: N
Rate Explanation: (2) Workforces Solutions for South Texas has elected to use the 10 percent de minimis indirect cost rate with the exception of the programs that the Workforce Solutions for South Texas submitted cost allocation plans as allowed under the Uniform Guidance and the State of Texas Single Audit Circular and the Texas Grant Management Standards (TxGMS).
Of the federal and state expenditures presented in the Schedule of Federal and State Awards, Workforce Solutions for South Texas provided federal and state awards to its for-profit sub-recipient and contracted service provider SERCO in the amount of $4,224,770, which is listed on the pass through to sub recipient column of the Schedule.