Notes to SEFA
Title: Note 2
Accounting Policies: The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. The Governmental Fund types are accounted for using a current financial resources measurement focus in modified accrual basis of accounting. The Proprietary Fund types are accounting for using full accrual basis of accounting.
De Minimis Rate Used: N
Rate Explanation: Indirect cost rates for Texas Cities are based on negotiated rates and not the de minimis cost rate.
For all Federal programs, the City uses special revenue funds to account for resources restricted or committed to specific purposes by a grantor. Federal and state financial assistance generally is accounted for in a Grants Fund.
Title: Note 4
Accounting Policies: The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. The Governmental Fund types are accounted for using a current financial resources measurement focus in modified accrual basis of accounting. The Proprietary Fund types are accounting for using full accrual basis of accounting.
De Minimis Rate Used: N
Rate Explanation: Indirect cost rates for Texas Cities are based on negotiated rates and not the de minimis cost rate.
Federal grant funds are considered to be earned to the extent of expenditures made under the provisions of the grant, and, accordingly, when such funds are received, they are recorded as deferred revenues until earned.
Title: Note 5
Accounting Policies: The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. The Governmental Fund types are accounted for using a current financial resources measurement focus in modified accrual basis of accounting. The Proprietary Fund types are accounting for using full accrual basis of accounting.
De Minimis Rate Used: N
Rate Explanation: Indirect cost rates for Texas Cities are based on negotiated rates and not the de minimis cost rate.
A reconciliation of federal program revenues and expenditures is as follows:
Title: Note 6
Accounting Policies: The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. The Governmental Fund types are accounted for using a current financial resources measurement focus in modified accrual basis of accounting. The Proprietary Fund types are accounting for using full accrual basis of accounting.
De Minimis Rate Used: N
Rate Explanation: Indirect cost rates for Texas Cities are based on negotiated rates and not the de minimis cost rate.
The City of Linden has loan programs under the Water and Waste Disposal Systems for Rural Communities ALN 10.760 outstanding at September 30, 2024 as follows:
Title: Note 7
Accounting Policies: The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. The Governmental Fund types are accounted for using a current financial resources measurement focus in modified accrual basis of accounting. The Proprietary Fund types are accounting for using full accrual basis of accounting.
De Minimis Rate Used: N
Rate Explanation: Indirect cost rates for Texas Cities are based on negotiated rates and not the de minimis cost rate.
The City of Linden's federal expenditures may temporarily differ from the recognition of funding sources due to the timing of loan draws. A reconciliation of the applicable capital projects addition to the schedule of federal expenditures is as follows: