Audit 364862

Title: A. Basis of Presentation Accounting Policies: B. Summary of Significant Accounting Policies In accordance with generally accepted accounting principles, the Organization accounts for all awards under federal and state programs on an accrual basis of accounting and, accordingly, reflects all significant receivables, payables, and other liabilities. Federal and state grant funds are considered to be earned to the extent of expenditures made under the provisions of the grant. When such funds are advanced to the Organization, they are recorded as deferred revenues until earned. Otherwise, federal and state grant funds are received on a reimbursement basis from the respective federal and state program agencies. Generally, unused balances are returned to the grantor at the close of specified project periods. Expenditures reported on the Schedules are reported on the accrual basis of accounting. Such 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 shown on the Schedules represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Pass-through entity identifying numbers are presented where available. The Organization has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: See note above, last paragraph, last sentence. The accompanying Schedules of Expenditures of Federal and State Awards (the “Schedules”) include the federal and state grant activity of the Fort Bend County Child Advocates, Inc. (the “Organization”) under programs of the federal and state government for the year ended December 31, 2024. The information in these schedules are presented in accordance with the requirements of the Title 2 U.S CFR Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) and the State of Texas Grant Management Standards (TxGMS). Because the Schedules present only 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.