Notes to SEFA
Title: Note 1: BASIS OFACCOUNTING
Accounting Policies: There are two notes. The first is the basis of accounting for the SEFA to provide reader with understanding of accounting method applied. The second is to indicate the de minimis cost rate for indirect costs was not utilized.
De Minimis Rate Used: N
Rate Explanation: No indirect costs were used.
The accompanying schedule of expenditures of federal awards includes the grant activity of
Nolanville, Texas and is presented on the accrual basis of accounting. The information in this
schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal
Regulations (CFR) Part 200, Cost Principles for Federal Awards (the Uniform Guidance). Therefore,
some amounts presented in this schedule may differ from amounts presented in or used in the
preparation of the basic financial statements.
Title: Note 2: INDIRECT COST RATE
Accounting Policies: There are two notes. The first is the basis of accounting for the SEFA to provide reader with understanding of accounting method applied. The second is to indicate the de minimis cost rate for indirect costs was not utilized.
De Minimis Rate Used: N
Rate Explanation: No indirect costs were used.
The City has not elected to use the 10 percent de minimis indirect cost rate allowed under the
Uniform Guidance.