Notes to SEFA
Title: 1. BASIS OF PRESENTATION
Accounting Policies: 2. BASIS OF ACCOUNTING
The Schedule of Expenditures of Federal Awards is prepared on the modified accrual basis of accounting.
Expenditures are recognized when the related fund liability is incurred. Federal grants are considered to be earned to
the extent of expenditures made under the provision of the grant and are received on a reimbursement basis.
De Minimis Rate Used: N
Rate Explanation: 3. INDIRECT COST RATE
The City of Round Rock has not elected to use the 10-percent de minimis indirect cost rate allowed under the
Uniform Guidance.
The Schedule of Expenditures of Federal Awards (SEFA) presents the activity of all applicable federal awards of the
City of Round Rock, Texas. The City's reporting entity is defined in the notes of the basic financial statements. Federal
financial assistance received directly from federal agencies as well as federal financial assistance passed through other
governmental agencies is included on the Schedule of Expenditures of Federal Awards. The information on this
schedule is presented in accordance with the requirements of Uniform Guidance, Audits of States, Local Governments
and Non-Profit Organizations. Therefore, some amounts presented in this schedule may differ from amounts
presented in or used in the preparation of the basic financial statements.
Title: 4. EXPENDITURES INCURRED IN A PRIOR YEAR
Accounting Policies: 2. BASIS OF ACCOUNTING
The Schedule of Expenditures of Federal Awards is prepared on the modified accrual basis of accounting.
Expenditures are recognized when the related fund liability is incurred. Federal grants are considered to be earned to
the extent of expenditures made under the provision of the grant and are received on a reimbursement basis.
De Minimis Rate Used: N
Rate Explanation: 3. INDIRECT COST RATE
The City of Round Rock has not elected to use the 10-percent de minimis indirect cost rate allowed under the
Uniform Guidance.
Expenditures recorded in the SEFA, associated with TC Idalia and Texas Severe Winter Storm that were passed
through the Texas A&M Engineering Extension Service and Texas Division of Emergency Management to the City of
Round Rock from the U.S. Department of Homeland Security, were incurred in a prior year.
Even though the expenditures were incurred in a prior year, the final invoices were not approved for payment until
FY 2024. Accordingly, these expenditures are being reported on the City of Round Rock's SEFA in the year they were
approved for payment, in compliance with the OMB Compliance Supplement.