Audit 38315

Accounting Policies: This summary of significant accounting policies of City of Socorro, Texas is presented to assist in understanding City of Socorro, Texas Schedule of Expenditures of Federal Awards. The Schedule and notes are representations of City of Socorro, Texas management, who is responsible for their integrity and objectivity. Basis of Accounting and Presentation The Schedule of Expenditures of Federal Awards is prepared using the accrual basis of accounting. The information in this schedule is presented in accordance with the Uniform Guidance. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. Indirect Costs City of Socorro, Texas does not currently have a negotiated indirect cost reimbursement rate approved by a Federal Cognizant Agency; therefore, the City has elected to use the de minimis rate of 10% of modified total direct costs as an indirect cost allocation factor, as allowed under 2C.F.R. ?200.414. Subrecipients There were no sub-recipients of the Federal Awards received by the City of Socorro for the year ended September 30, 2022. De Minimis Rate Used: Y Rate Explanation: The auditee used the de minimis cost rate.