Notes to SEFA
Title: Basis of Accounting
Accounting Policies: The accompanying schedule of expenditures of federal and state awards presents the activity of all applicable federal and state awards of Midland County, Texas (the County). The County’s reporting entity is defined in Note 1 to the County’s financial statements. Federal and state awards received directly from federal and state agencies as well as federal and state awards passed through other government agencies are included in the respective schedule.
De Minimis Rate Used: N
Rate Explanation: The County has not elected to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.
The accompanying schedule of expenditures of federal and state awards is presented using 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 provisions of the grant and, accordingly, when such funds are received they are recorded as unearned revenue until earned.
Title: Relationship to Federal Financial Reports
Accounting Policies: The accompanying schedule of expenditures of federal and state awards presents the activity of all applicable federal and state awards of Midland County, Texas (the County). The County’s reporting entity is defined in Note 1 to the County’s financial statements. Federal and state awards received directly from federal and state agencies as well as federal and state awards passed through other government agencies are included in the respective schedule.
De Minimis Rate Used: N
Rate Explanation: The County has not elected to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.
Grant expenditure reports as of September 30, 2024, which have been submitted to grantor agencies will, in some cases, differ slightly from amounts disclosed herein. The reports prepared for grantor agencies are typically prepared at a later date and often reflect refined estimates of year-end accruals. The reports will agree at termination of the grant as the discrepancies noted are timing differences.