Title: NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Accounting Policies: NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, NOTE 2: INDIRECT COST RATE, NOTE 3: FEDERAL LOANS AND LOAN GUARANTEES, NOTE 4: SUB-RECIPIENTS, NOTE 5: NONCASH AWARDS, NOTE 6: FEDERALLY FUNDED INSURANCE
De Minimis Rate Used: Y
Rate Explanation: The City has elected not to use the 10 percent de minimis indirect cost rate allowed under the
Uniform Guidance.
Basis of Presentation
The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal
grant activity of the City of Mercedes, Texas. The information in the 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
(“Uniform Guidance”). Therefore, some amounts may differ from amounts presented in or used in
the preparation of the basic financial statements.
Expenditures reported on the Schedule are reported on the modified accrual basis of accounting.
These expenditures are recognized following the cost principles contained in the Uniform Guidance,
wherein certain types of expenditures are not allowable or are limited as to reimbursement.
Title: NOTE 2: INDIRECT COST RATE
Accounting Policies: NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, NOTE 2: INDIRECT COST RATE, NOTE 3: FEDERAL LOANS AND LOAN GUARANTEES, NOTE 4: SUB-RECIPIENTS, NOTE 5: NONCASH AWARDS, NOTE 6: FEDERALLY FUNDED INSURANCE
De Minimis Rate Used: Y
Rate Explanation: The City has elected not to use the 10 percent de minimis indirect cost rate allowed under the
Uniform Guidance.
The City has elected not to use the 10 percent de minimis indirect cost rate allowed under the
Uniform Guidance.
Title: NOTE 3: FEDERAL LOANS AND LOAN GUARANTEES
Accounting Policies: NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, NOTE 2: INDIRECT COST RATE, NOTE 3: FEDERAL LOANS AND LOAN GUARANTEES, NOTE 4: SUB-RECIPIENTS, NOTE 5: NONCASH AWARDS, NOTE 6: FEDERALLY FUNDED INSURANCE
De Minimis Rate Used: Y
Rate Explanation: The City has elected not to use the 10 percent de minimis indirect cost rate allowed under the
Uniform Guidance.
During the fiscal year ended September 30, 2024, the City had no outstanding federal loans payable
or loan guarantees.
Title: NOTE 4: SUB-RECIPIENTS
Accounting Policies: NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, NOTE 2: INDIRECT COST RATE, NOTE 3: FEDERAL LOANS AND LOAN GUARANTEES, NOTE 4: SUB-RECIPIENTS, NOTE 5: NONCASH AWARDS, NOTE 6: FEDERALLY FUNDED INSURANCE
De Minimis Rate Used: Y
Rate Explanation: The City has elected not to use the 10 percent de minimis indirect cost rate allowed under the
Uniform Guidance.
During the fiscal year ended September 30, 2024, the City did not have any sub-recipients.
Title: NOTE 5: NONCASH AWARDS
Accounting Policies: NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, NOTE 2: INDIRECT COST RATE, NOTE 3: FEDERAL LOANS AND LOAN GUARANTEES, NOTE 4: SUB-RECIPIENTS, NOTE 5: NONCASH AWARDS, NOTE 6: FEDERALLY FUNDED INSURANCE
De Minimis Rate Used: Y
Rate Explanation: The City has elected not to use the 10 percent de minimis indirect cost rate allowed under the
Uniform Guidance.
During the fiscal year ended September 30, 2024, the City did not receive any non-cash assistance.
Title: NOTE 6: FEDERALLY FUNDED INSURANCE
Accounting Policies: NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, NOTE 2: INDIRECT COST RATE, NOTE 3: FEDERAL LOANS AND LOAN GUARANTEES, NOTE 4: SUB-RECIPIENTS, NOTE 5: NONCASH AWARDS, NOTE 6: FEDERALLY FUNDED INSURANCE
De Minimis Rate Used: Y
Rate Explanation: The City has elected not to use the 10 percent de minimis indirect cost rate allowed under the
Uniform Guidance.
During the fiscal year ended September 30, 2024, the City had no outstanding federally funded
insurance.