Notes to SEFA
Title: Note 1. Basis of Presentation
Accounting Policies: Expenditures reported in the accompanying Schedules are reported on the accrual basis of accounting.
Such expenditures are recognized following the cost principles contained in Uniform Guidance, and
“frequently asked questions” (“FAQs”) and other guidance issued by the U.S. Department of the Treasury
and Texas Grant Management Standards of the State of Texas, wherein certain types of expenditures are
not allowable or limited as to reimbursement. Grantor and pass-through grantor identifying numbers are
presented where available.
De Minimis Rate Used: N
Rate Explanation: The City has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.
The accompanying schedules of expenditures of federal and state awards (the “Schedules”) include the
federal and state award activity of the City of Waco, Texas (the “City”) under programs of federal and
state governments for the year ended September 30, 2024. The information in these Schedules 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 Texas Grant Management Standards of the State of Texas. Because the
Schedules present only a selected portion of the operations of the City, they are not intended to and do
not present the financial position, changes in net position, or cash flows of the City.
Title: Note 2. Summary of Significant Accounting Policies
Accounting Policies: Expenditures reported in the accompanying Schedules are reported on the accrual basis of accounting.
Such expenditures are recognized following the cost principles contained in Uniform Guidance, and
“frequently asked questions” (“FAQs”) and other guidance issued by the U.S. Department of the Treasury
and Texas Grant Management Standards of the State of Texas, wherein certain types of expenditures are
not allowable or limited as to reimbursement. Grantor and pass-through grantor identifying numbers are
presented where available.
De Minimis Rate Used: N
Rate Explanation: The City has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.
Expenditures reported in the accompanying Schedules are reported on the accrual basis of accounting.
Such expenditures are recognized following the cost principles contained in Uniform Guidance, and
“frequently asked questions” (“FAQs”) and other guidance issued by the U.S. Department of the Treasury
and Texas Grant Management Standards of the State of Texas, wherein certain types of expenditures are
not allowable or limited as to reimbursement. Grantor and pass-through grantor identifying numbers are
presented where available.
Title: Note 3. Indirect Cost Rate
Accounting Policies: Expenditures reported in the accompanying Schedules are reported on the accrual basis of accounting.
Such expenditures are recognized following the cost principles contained in Uniform Guidance, and
“frequently asked questions” (“FAQs”) and other guidance issued by the U.S. Department of the Treasury
and Texas Grant Management Standards of the State of Texas, wherein certain types of expenditures are
not allowable or limited as to reimbursement. Grantor and pass-through grantor identifying numbers are
presented where available.
De Minimis Rate Used: N
Rate Explanation: The City has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.
The City has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.
Title: Note 4. Federal Loan Program
Accounting Policies: Expenditures reported in the accompanying Schedules are reported on the accrual basis of accounting.
Such expenditures are recognized following the cost principles contained in Uniform Guidance, and
“frequently asked questions” (“FAQs”) and other guidance issued by the U.S. Department of the Treasury
and Texas Grant Management Standards of the State of Texas, wherein certain types of expenditures are
not allowable or limited as to reimbursement. Grantor and pass-through grantor identifying numbers are
presented where available.
De Minimis Rate Used: N
Rate Explanation: The City has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.
The federal loan program listed as non-cash assistance on the accompanying schedule of federal awards
is administered directly by the City, and balances and transactions relating to this program are included
in the City’s basic financial statements. Loans outstanding at the beginning of the year and loans made
during the year are included in the federal expenditures presented in the Schedules. The balance of loans (see the Notes to the SEFA for chart/table to view the ending balance of loans)
outstanding at September 30, 2024 consists of the following: