Notes to SEFA
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. AllFederal grant funds were accounted for in a Special Revenue Fund that is a Governmental Fund type. Withthis measurement focus, only current assets and current liabilities and the fund balance are included on thebalance sheet. Operating statements of these funds present increases and decreases in net current assets.The modified accrual basis of accounting is used for the Governmental Fund types. This basis ofaccounting recognizes revenues in the accounting period in which they become susceptible to accrual, i.e.,both measurable and available, and expenditures in the accounting period in which the fund liability isincurred. Federal grant funds are considered to be earned to the extent of expenditures made under the provisions ofthe grant, and, accordingly, when such funds are received, they are recorded as deferred expenditures untilearned.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.