Audit 338506

Title: NOTE 1 – SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: Basis of presentation – The schedules of expenditures of federal and state awards (the schedules) are prepared on the accrual basis of accounting. The information in these schedules is presented in accordance with the requirements of Title 2 U. S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) and the Texas Grant Management Standards. Federal and state expenses include allowable expenses funded by federal and state grants. Allowable costs are subject to the cost principles of the Uniform Guidance and the Texas Grant Management Standards, and include both costs that are capitalized and costs that are recognized as expenses in the Assessment Center’s financial statements in conformity with generally accepted accounting principles. The Assessment Center has not elected to use the 10% de minimis cost rate for indirect costs. The Assessment Center has elected to use a shared cost allocation plan approved by the funder which charges costs directly to the award based on a reasonable allocation method that is consistently applied. The Assessment Center has no subrecipients. Because the schedules present only a selected portion of the operations of the Assessment Center, they are not intended to and do not present the financial position, changes in net assets, or cash flows of the Assessment Center. De Minimis Rate Used: N Rate Explanation: The Auditee has not elected to use the 10% de minimis cost rate for indirect costs. Basis of presentation – The schedules of expenditures of federal and state awards (the schedules) are prepared on the accrual basis of accounting. The information in these schedules is presented in accordance with the requirements of Title 2 U. S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) and the Texas Grant Management Standards. Federal and state expenses include allowable expenses funded by federal and state grants. Allowable costs are subject to the cost principles of the Uniform Guidance and the Texas Grant Management Standards, and include both costs that are capitalized and costs that are recognized as expenses in the Assessment Center’s financial statements in conformity with generally accepted accounting principles. The Assessment Center has not elected to use the 10% de minimis cost rate for indirect costs. The Assessment Center has elected to use a shared cost allocation plan approved by the funder which charges costs directly to the award based on a reasonable allocation method that is consistently applied. The Assessment Center has no subrecipients. Because the schedules present only a selected portion of the operations of the Assessment Center, they are not intended to and do not present the financial position, changes in net assets, or cash flows of the Assessment Center.