Audit 361919

Title: NOTE 1 – SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: Basis of presentation – The schedule of expenditures of federal awards is prepared 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 (Uniform Guidance). Federal expenditures include allowable costs funded by federal grants. Allowable costs are subject to the cost principles of the Uniform Guidance and include costs that are recognized as expenses in The Woodlands Township’s financial statements in conformity with generally accepted accounting principles. The Woodlands Township does not have any subrecipients, does not have an approved indirect cost rate, and has elected to not use the 10% de minimis rate for indirect costs. Because the schedule presents only a selected portion of the operations of The Woodlands Township, it is not intended to and does not present the financial position, changes in net assets, or cash flows of The Woodlands Township. De Minimis Rate Used: N Rate Explanation: The Auditee has elected to not use the 10% de minimis rate for indirect costs. Basis of presentation – The schedule of expenditures of federal awards is prepared 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 (Uniform Guidance). Federal expenditures include allowable costs funded by federal grants. Allowable costs are subject to the cost principles of the Uniform Guidance and include costs that are recognized as expenses in The Woodlands Township’s financial statements in conformity with generally accepted accounting principles. The Woodlands Township does not have any subrecipients, does not have an approved indirect cost rate, and has elected to not use the 10% de minimis rate for indirect costs. Because the schedule presents only a selected portion of the operations of The Woodlands Township, it is not intended to and does not present the financial position, changes in net assets, or cash flows of The Woodlands Township. Estimates – Management must make estimates and assumptions to prepare the schedule of expenditures of federal awards in accordance with generally accepted accounting principles. These estimates and assumptions affect the reported amounts of expenditures. Actual results could vary from the estimates that were used.