Notes to SEFA
Basis of presentation – The schedule of expenditures of federal awards (the schedule) is prepared on the accrual basis of accounting. The information in this schedule 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). Federal expenditures include allowable costs funded by federal grants. Allowable costs are subject to the cost principles of the Uniform Guidance and include costs that are recognized as expenses in Houston Recovery Center’s financial statements in conformity with generally accepted accounting principles. Houston Recovery Center has elected not to use the 10% de minimus rate for indirect costs. Additionally, Houston Recovery Center does not have subrecipients. Because the schedule presents only a selected portion of the operations of Houston Recovery Center, it is not intended to and does not present the net position or the changes in net position of Houston Recovery Center.