Notes to SEFA
Title: (1) Basis of presentation
Accounting Policies: Expenditures reported on the schedule of expenditures of federal and state awards are reported on the accrual
basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited to reimbursement.
De Minimis Rate Used: N
Rate Explanation: Workforce Solutions – Capital Area Workforce Board has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.
The accompanying schedules of expenditures of federal and state awards include the federal and state grant
activity of Workforce Solutions – Capital Area Workforce Board (the “Organization”) and are presented on the
accrual basis of accounting. The information in these schedules is presented in accordance with the
requirements of Title 2, Chapter II, Part 200, et al Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (the Uniform Guidance) and the Texas Grants Management Standards. Because the schedules only present a selected portion of the operations of the Organization, they are not intended to and do not present the financial position, changes in net assets, or cash flows of the Organization.
Title: (2) Summary of significant accounting policies
Accounting Policies: Expenditures reported on the schedule of expenditures of federal and state awards are reported on the accrual
basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited to reimbursement.
De Minimis Rate Used: N
Rate Explanation: Workforce Solutions – Capital Area Workforce Board has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.
Expenditures reported on the schedule of expenditures of federal and state awards are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited to reimbursement.
Title: (3) Contingent liabilities
Accounting Policies: Expenditures reported on the schedule of expenditures of federal and state awards are reported on the accrual
basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited to reimbursement.
De Minimis Rate Used: N
Rate Explanation: Workforce Solutions – Capital Area Workforce Board has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.
The Organization participates in a number of federally assisted programs. These programs are audited in
accordance with Government Auditing Standards and the Uniform Guidance, if applicable, in accordance with
the required levels of federal financial assistance, and TxGMS. Audits of prior years have not resulted in any significant disallowed costs; however, grantor agencies may provide for further examinations. Based on prior experience, management believes that further examinations would not result in any significant disallowed costs. For a portion of the expenditures in the federal programs, Workforce Solutions – Capital Area Workforce Board contracts with other entities to perform specific services set forth in the grant agreement. The Organization disburses grant funds to the entities based on invoices and reports received from each contractor. These agencies are required to submit an annual independent audit report to Workforce Solutions – Capital Area
Workforce Board. Workforce Solutions – Capital Area Workforce Board also performs financial monitoring on the contractors. If such audits or monitoring activities disclose expenditures not in accordance with terms on the local contract agreement, the Organization’s grantor agency could disallow the costs and require reimbursement from the Organization’s nonfederal funds. Workforce Solutions – Capital Area Workforce Board generally has the right of recovery from the contractors. Based on prior experience, management believes that the Organization will not incur significant losses from possible grant disallowance.
Title: (4) Relationship to financial reports
Accounting Policies: Expenditures reported on the schedule of expenditures of federal and state awards are reported on the accrual
basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited to reimbursement.
De Minimis Rate Used: N
Rate Explanation: Workforce Solutions – Capital Area Workforce Board has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.
Accounts reported in the accompanying schedules may not agree with the amounts reported in the related
financial reports filed with the grantor agencies for the month ended September 30, 2024 because of accruals
made in the schedules for financial statement reporting purposes. These accruals were included in future reports filed with the agencies.
Title: (5) Indirect costs
Accounting Policies: Expenditures reported on the schedule of expenditures of federal and state awards are reported on the accrual
basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited to reimbursement.
De Minimis Rate Used: N
Rate Explanation: Workforce Solutions – Capital Area Workforce Board has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.
Workforce Solutions – Capital Area Workforce Board has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.