Audit 359945

Title: Basis of Presentation Accounting Policies: Expenditures are reported on the modified accrual basis of accounting. De Minimis Rate Used: N Rate Explanation: Freestone County did not charge any indirect costs. The accompanying schedule of expenditures of federal awards ("the Schedule") includes the federal grant activity of Freestone County, 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.

Title: Summary of Significant Accounting Policies Accounting Policies: Expenditures are reported on the modified accrual basis of accounting. De Minimis Rate Used: N Rate Explanation: Freestone County did not charge any indirect costs. 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. Negative amounts shown on the Schedule, if any, represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Freestone County, Texas has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.