Notes to SEFA
Accounting Policies: 1. The accompanying schedule of expenditures of federal awards (the "Schedule") includesthe federal award activity of the Port Arthur Housing Authority under programs of thefederal government for the year ended September 30, 2022. The information on thisSchedule is presented in accordance with the requirements of Title 2 U.S. Code of FederalRegulations Part 200, Uniform Administrative Requirements, Cost Principles, and AuditRequirements for Federal Awards ("Uniform Guidance"). Because the Schedule presentsonly a selected portion of the operations of the Port Arthur Housing Authority, it is notintended to and does not present the financial position, changes in net position, or cashflows of the Port Arthur Housing Authority. The financial statements of the discretelypresented and blended component units as identified in Note 1 to the Financial Statementswere not audited in accordance with Government Auditing Standards and they are notsubject to the requirements under Uniform Guidance.2. Expenditures included in the Schedule are reported on the accrual basis of accounting.Such expenditures are recognized following the cost principles contained in the UniformGuidance, wherein certain types of expenditures are not allowable or are limited as toreimbursement.3. In accordance with HUD regulations, HUD considers the Annual Budget Authority for theSection 8 Housing Choice Voucher Program, CFDA Number 14.871, as an expenditure forthe purposes of this schedule. Therefore, the amount in this schedule represents the totalamount received and due from HUD and not the total expenditures paid by the Port ArthurHousing Authority.4. Port Arthur Housing Authority has elected not to use the 10 percent de minimis indirect costrate allowed under the Uniform Guidance.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.