Notes to SEFA
Accounting Policies: The accompanying schedules of expenditures of federal and state awards include the grant activity of the
County and is presented on the modified accrual basis of accounting. The modified accrual basis of
accounting is used for the Governmental Fund types. This basis of accounting recognizes revenue in the
accounting period in which they become susceptible to accrual, i.e., both measurable and available, and
expenditures in the accounting period in which the fund liability is incurred, if measurable.
Federal and state grant funds are considered to be earned to the extent of expenditures made under the
provisions of the grant, and accordingly, when such funds are received, they are recorded as unearned
revenue until earned.
The information in these schedules is presented in accordance with the requirements of the State of Texas
Single Audit Circular (“Audit Circular”) and Uniform Guidance. The Audit Circular was issued under the
authority of the Texas Government Code, Chapter 783, entitled Uniform Grant and Contract
Management.
This circular sets standards for obtaining consistency and uniformity among state agencies for the
coordinated audit of local governments expending any state awards. Because the schedules present only a
selected portion of the operations of the County, it is not intended to and does not present the financial
position of the County.
De Minimis Rate Used: N
Rate Explanation: The County did not use the 10% de minimis indirect cost rate as allowed by Uniform Guidance.