Audit 344424

Title: NOTE 1 – SIGNIFICANT ACCOUNTING POLICIES USED IN PREPARING THE SCHEDULE Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal grant activity of City of Whitehouse, Texas under programs of the federal government for the year ended September 30, 2024 and is presented on the modified 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, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards (Uniform Guidance). Because the schedule presents only a selected portion of the operations of City of Whitehouse, Texas, it is not intended to and does not present the financial position, changes in net assets or cash flows of City of Whitehouse, Texas. De Minimis Rate Used: N Rate Explanation: not concidered ncessary The accompanying schedule of expenditures of federal awards includes the federal grant activity of City of Whitehouse, Texas under programs of the federal government for the year ended September 30, 2024 and is presented on the modified 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, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards (Uniform Guidance). Because the schedule presents only a selected portion of the operations of City of Whitehouse, Texas, it is not intended to and does not present the financial position, changes in net assets or cash flows of City of Whitehouse, Texas.

Title: NOTE 2 – INDIRECT COST RATES Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal grant activity of City of Whitehouse, Texas under programs of the federal government for the year ended September 30, 2024 and is presented on the modified 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, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards (Uniform Guidance). Because the schedule presents only a selected portion of the operations of City of Whitehouse, Texas, it is not intended to and does not present the financial position, changes in net assets or cash flows of City of Whitehouse, Texas. De Minimis Rate Used: N Rate Explanation: not concidered ncessary The City did not elect to use the 10 percent de minimis indirect cost rate as covered in 2 CFR § 200.414.