Audit 353748

Title: Note 3 - Basis of presentation Accounting Policies: Expenditures included on the accompanying Schedule of Expenditures of Federal Awards (“Schedule”) are reported on the accrual basis of accounting and accordingly, all significant receivables, payables, and other liabilities are included. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (“Uniform Guidance”), wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The City of Madisonville, Texas has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance General. The Schedule includes the federal grant activity of the City of Madisonville, Texas under programs of the federal government for the year ended September 30, 2024. The information in this schedule is presented in accordance with the requirements of the Uniform Guidance. Because the Schedule presents only a selected portion of the operations of the City of Madisonville, Texas, it is not intended to and does not present the financial position, changes in net position, or cash flows of the City of Madisonville, Texas. Relationship to Federal Financial Reports. For some grants, amounts included in federal financial reports filed by the City with grantor agencies are reported on the cash basis. Accordingly, the related cash basis reports may not agree with amounts reported in the accompanying Schedule of Expenditures of Federal Awards.

Title: Note 4 - Other Accounting Policies: Expenditures included on the accompanying Schedule of Expenditures of Federal Awards (“Schedule”) are reported on the accrual basis of accounting and accordingly, all significant receivables, payables, and other liabilities are included. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (“Uniform Guidance”), wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The City of Madisonville, Texas has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance Pass-through entity identifying numbers are presented where available.