Notes to SEFA
Title: 1. Basis of Presentation
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 and Component Units 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 accompanying schedule of expenditures of federal and state awards includes the federal and state grant activity of the City of De Kalb, Texas and its discretely presented component unit, De Kalb Economic Development Corporation, under programs of the federal and state government for the year ended September 30, 2024. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance).
Title: 4. Discretely Presented Component Unit
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 and Component Units 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 federal expenditures of De Kalb Economic Development Corporation, a discretely presented component unit of the City of De Kalb, are included in this schedule. The component unit is responsible for its own federal program administration and compliance. A reconciliation of federal and state program revenues and expenditures is as follows: