Notes to SEFA
This Schedule is prepared on the same basis of accounting as the Town of Index financial statements. The Town of Index uses the Cash Basis Budgeting, Accounting, and Reporting System (BARS) Manual prescribed by the State Auditor’s Office under the authority of Washington State law, Chapter 43.09 RCW. This manual prescribes a financial reporting framework that differs from generally accepted accounting principles (GAAP) in the following manner. • Financial transactions are recognized on a cash basis of accounting as described in Note 1(B). • Component units are required to be disclosed but are not included in the financial statements. • Government-wide statements, as defined in GAAP, are not presented. • All funds are presented, rather than a focus on major funds. • The Schedule of Liabilities is required to be presented with the financial statements as supplementary information. • Supplementary information required by GAAP is not presented.
The Town of Index has not elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.