Notes to SEFA
Accounting Policies: Summary of Significant Accounting Policies Applicable to the Schedule of Expendituresof Federal Awardsa. Scope of PresentationThe accompanying schedule presents only the expenditures incurred by theSan Joaquin Council of Governments (the Council) that are reimbursable under federalprograms of federal financial assistance. For the purposes of this schedule, federal awardsinclude both federal financial assistance received directly from a federal agency, as well asfederal funds received indirectly by the Council from a non-federal agency or otherorganization. Only the portion of program expenditures reimbursable with such federal fundsis reported in the accompanying schedule. Program expenditures in excess of the maximumfederal reimbursement authorized or the portion of the program expenditures that werefunded with state, local or other non-federal funds are excluded from the accompanyingschedule.b. Basis of AccountingThe expenditures included in the accompanying schedule were reported on the modifiedaccrual basis of accounting. Under the modified accrual basis of accounting, expendituresare incurred when the Council becomes obligated for payment as a result of the receipt ofthe related goods and services. Expenditures reported included any property or equipmentacquisitions incurred under the federal program. The Council has elected not to use the10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.