Audit 41119

Accounting Policies: 1.BASIS OF PRESENTATION The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal awards expenditures of Milam County, Texas (the County) under programs of the federal government for the year ended December 31, 2022. The information in the accompanying Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the County, it is not intended to and does not present the financial position or change in net position of the County. 2.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Accounting - The expenditures on the accompanying schedule of expenditures of federal awards are presented using the modified accrual basis of accounting. Under the modified accrual basis of accounting, revenues are recognized in the accounting period in which they become measurable and available, and expenditures in the accounting period in which the fund liability is incurred, if measurable. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited to reimbursement. Relationship to Basic Financial Statements - Expenditures of federal awards are reported in the County's basic financial statements in the special revenue funds. Relationship to Federal Financial Reports - Amounts reported in the accompanying schedule of expenditures of federal awards agree with the amounts reported in the related federal financial reports in all significant respects. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.