Audit 354466

Title: NOTE 1 - BASIS OF PRESENTATION Accounting Policies: Expenditures reflected on the accompanying schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, Cost Principles for Non-Profit Organizations, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: Border RAC has elected not to use the 10 percent de minimis indirect cost rate. The accompanying schedule of expenditures of federal and state awards includes the federal and state grant activity of Far West Texas and Southern New Mexico Regional Advisory Council on Trauma dba Border Regional Advisory Council (Border RAC) and is presented on the 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, and the Texas Grant Management Standards issued by the Office of the Governor of the State. Because the schedule presents only a selected portion of the operations of Border RAC, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Border RAC.

Title: NOTE 2 - SUMMARY OF ACCOUNTING POLICIES Accounting Policies: Expenditures reflected on the accompanying schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, Cost Principles for Non-Profit Organizations, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: Border RAC has elected not to use the 10 percent de minimis indirect cost rate. Expenditures reflected on the accompanying schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, Cost Principles for Non-Profit Organizations, wherein certain types of expenditures are not allowable or are limited as to reimbursement.

Title: NOTE 3 - OTHER DISCLOSURES Accounting Policies: Expenditures reflected on the accompanying schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, Cost Principles for Non-Profit Organizations, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: Border RAC has elected not to use the 10 percent de minimis indirect cost rate. Border RAC carries insurance specifically to cover equipment purchased with federal and state funds. There were no loans or loan guarantees outstanding at year end. Border RAC disbursed $249,963 in state awards to subrecipients for the year ended August 31, 2024. Border RAC has elected not to use the 10 percent de minimis indirect cost rate.