Notes to SEFA
Title: NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Accounting Policies: Expenditures reported on the schedule are reported on the accrual basis of accounting. 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
to reimbursement.
De Minimis Rate Used: N
Rate Explanation: No
Expenditures reported on the schedule are reported on the accrual basis of accounting. 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
to reimbursement.
Title: NOTE 2 – BASIS OF ACCOUNTING
Accounting Policies: Expenditures reported on the schedule are reported on the accrual basis of accounting. 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
to reimbursement.
De Minimis Rate Used: N
Rate Explanation: No
The accompanying schedule of expenditures of federal awards includes the federal grant activity of Hot
Spring County, Arkansas, and is presented on the accrual basis of accounting. The information in the
schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations
Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal
Awards (Uniform Guidance). Because the schedule presents only a selected portion of the operations of
the County, it is not intended to and does not present the financial position, changes in net assets, or cash
flows of the County.
Title: NOTE 3 – FEDERAL INDIRECT RATE
Accounting Policies: Expenditures reported on the schedule are reported on the accrual basis of accounting. 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
to reimbursement.
De Minimis Rate Used: N
Rate Explanation: No
The County has elected not to use the 10 percent de-minimis indirect cost rate as allowed under the
Uniform Guidance.
Title: NOTE 4 – PROGRAM COSTS
Accounting Policies: Expenditures reported on the schedule are reported on the accrual basis of accounting. 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
to reimbursement.
De Minimis Rate Used: N
Rate Explanation: No
The amounts shown as current-year expenses represent only the federal grant portion of the program
costs. Entire program costs including the County’s portion may be more than shown.