Notes to SEFA
Accounting Policies: The Housing Authority uses the fund types specified by the Governmental Accounting StandardsBoard. Special revenue funds are used to account for resources restricted to, or designated for,specific purposes. Federal and state financial assistance generally is accounted for in a SpecialRevenue Fund because it is restricted for specific purposes.? The accounting and financial reporting treatment applied to a fund is determined by its measurementfocus. The Governmental Fund types are accounted for using a current financial resourcesmeasurement focus called the modified accrual basis of accounting. Nearly all Federal grant fundswere accounted for in a Special Revenue Fund which is a Governmental Fund type. With thismeasurement 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 currentassets.The modified accrual basis of accounting recognizes revenues in the accounting period in which theybecome susceptible to accrual, i.e., both measurable and available, and expenditures in the accountingperiod in which the fund liability is incurred, if measurable, except for unmatured interest on GeneralLong-Term Debt, which is recognized when due, and certain compensated absences and claims andjudgments, which are recognized when the obligations are expected to be liquidated with expendableavailable financial resources.Usually, federal grant funds are considered to be earned to the extent of expenditures made under theprovisions of the grant. When Federal grant funds are received before related expenditures are made,they are recorded as deferred revenues.? The period of availability for federal grant funds for the purpose of liquidation of outstandingobligations made on or before the ending date of the federal project period extends 30 days beyond thefederal project period ending date, in accordance with provisions in Section H, Period of Availabilityof Federal Funds, Part 3, OMB Uniform Guidance Compliance Statement.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.