Audit 350482

Title: Relationship to Federal Financial Reports Accounting Policies: (a) Reporting Entity The Schedule of Expenditures of Federal and State Awards (the “Schedule”) includes the activity of all federal and state programs administered by Family Service Center of Galveston County, Texas (the “Organization”). The Organization is defined in Note 1 of the basic financial statements. (b) Basis of Presentation The Schedule presents total federal and state awards expended for each individual program in accordance with 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. (c) Basis of Accounting The expenditures for each of the federal and state financial assistance programs are presented on the accrual basis of accounting, which is defined in Note 1 of the Organization’s basic financial statements. De Minimis Rate Used: Y Rate Explanation: The Organization is subject to use the 10% de minimus indirect cost rate as allowed under the Uniform Guidance. The amounts reported in the financial reports agree with the amounts reported in the accompanying Schedule which is prepared on the basis explained in Note 1 of the Organization’s financial statements.