Notes to SEFA
Title: NOTE 1 -- BASIS OF PRESENTATION
Accounting Policies: Modified Accrrual
De Minimis Rate Used: N
Rate Explanation: The City 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 and state awards (Schedule) includes the federal and state award activity of the primary government of the City of Rockport, Texas (City) under programs of the federal and state government for the year ended September 30, 2023. The City’s reporting entity is defined in Note 1 in the City’s basic financial statements for the year ended September 30, 2023.
Title: NOTE 1 -- BASIS OF PRESENTATION (continued)
Accounting Policies: Modified Accrrual
De Minimis Rate Used: N
Rate Explanation: The City has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance.
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 Uniform Grant Management Standards (UGMS) issued by the Texas Comptroller of Public Accounts. Because the Schedule presents only a selected portion of the operations of the City, it is not intended to and does not present the financial position, changes in net position/fund balance or cash flows of the City.
Title: NOTE 2 -- SIGNIFICANT ACCOUNTING POLICIES
Accounting Policies: Modified Accrrual
De Minimis Rate Used: N
Rate Explanation: The City has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance.
Governmental fund expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Proprietary fund expenses reported on the Schedule are reported on the accrual basis of accounting. The City’s summary of significant accounting policies is presented in Note 1 to the City’s basic financial statements for the year ended September 30, 2023. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, other applicable regulatory guidance or State of Texas Uniform Grant Management Standards (UGMS), wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts, if any, shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years.
Title: NOTE 3 -- INDIRECT COST RATE
Accounting Policies: Modified Accrrual
De Minimis Rate Used: N
Rate Explanation: The City has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance.
The City has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance.