Notes to SEFA
Title: Note 1: Basis of Presentation
Accounting Policies: Note 2: Summary of Significant Accounting Policies
Expenditures on the Schedules are reported on the accrual basis of accounting. These expenditures are
recognized following the cost principles contained in the Uniform Guidance and TxGMS, wherein certain
types of expenditures are not allowable or are limited as to reimbursement. Negative amounts are shown
on the Schedules, if any, represent adjustments or credit made in the normal course of business to amounts
reported as expenditures in prior years.
De Minimis Rate Used: N
Rate Explanation: The City of has elected not to use the 10-percent de minimus indirect cost rate allowed under the Uniform
Guidance and TxGMS.
The accompanying schedules of expenditures of federal and state awards (“the Schedules”) include the
federal and state awards of the City. The information in the Schedules 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) and the
Texas Grant Management Standards (TxGMS). Because the Schedules present only a selected portion of
the operations of the City, they are not intended to and do not represent the financial position or changes
in the net position of the City.
Title: Note 3: Loan Programs
Accounting Policies: Note 2: Summary of Significant Accounting Policies
Expenditures on the Schedules are reported on the accrual basis of accounting. These expenditures are
recognized following the cost principles contained in the Uniform Guidance and TxGMS, wherein certain
types of expenditures are not allowable or are limited as to reimbursement. Negative amounts are shown
on the Schedules, if any, represent adjustments or credit made in the normal course of business to amounts
reported as expenditures in prior years.
De Minimis Rate Used: N
Rate Explanation: The City of has elected not to use the 10-percent de minimus indirect cost rate allowed under the Uniform
Guidance and TxGMS.
The City issued bonds that were purchased by the Texas Water Development Board with Clean Water
State Revolving Funds. The amount of state awards reported in the Schedule of Expenditures of State
Awards are the amount of bond funds spent during the period.