Notes to SEFA
Title: A. General
Accounting Policies: B. Basis of Accounting The accompanying Schedule of Expenditures of Federal and State Awards is presented using the modified accrual basis of accounting. These expenditures are accounted for under special revenue funds.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate. See Note E, last sentence.
The accompanying Schedule of Expenditures of Federal and State Awards presents the activity of all federal and state assistance programs of the Board. The Boards reporting entity is defined in Note A to the Boards financial statements. Federal awards received directly from federal agencies as well as federal awards passed through other government agencies are included on the schedule.
Title: C. Oversight Responsibilities
Accounting Policies: B. Basis of Accounting The accompanying Schedule of Expenditures of Federal and State Awards is presented using the modified accrual basis of accounting. These expenditures are accounted for under special revenue funds.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate. See Note E, last sentence.
The Board has oversight responsibilities in connection with many grants received an administered by Arbor E&T LLC (dba Equus Workforce Solutions). These grants are included in those entities single audits and schedules of federal and state awards.
Title: D. Relationship to the Financial Statements
Accounting Policies: B. Basis of Accounting The accompanying Schedule of Expenditures of Federal and State Awards is presented using the modified accrual basis of accounting. These expenditures are accounted for under special revenue funds.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate. See Note E, last sentence.
Grant expenditures reported on the Schedule of Expenditures of Federal and State Awards are recorded as Special Revenue Funds within the fund financial statements. The amount reflected as passthrough to subrecipient on the schedule is also reflected within the financial statements. Other income on the financial statements are recouped funds and not funds obtained directly from federal and state sources; accordingly, these amounts are excluded from the schedule of expenditures of federal and state awards. see the notes to the sefa for table"
Title: E. Indirect Cost Rate
Accounting Policies: B. Basis of Accounting The accompanying Schedule of Expenditures of Federal and State Awards is presented using the modified accrual basis of accounting. These expenditures are accounted for under special revenue funds.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate. See Note E, last sentence.
Indirect costs shown on the Schedule of Expenditures of Federal and State Awards are properly credited as revenues to the General Fund. These indirect cost revenues are determined by applying approved indirect cost rates to actual applicable expenditures of the projects. The Board has elected not to use the 10% de minimis cost rate as covered in 200.414 Indirect (F&A) costs.
Title: F. State Contracts
Accounting Policies: B. Basis of Accounting The accompanying Schedule of Expenditures of Federal and State Awards is presented using the modified accrual basis of accounting. These expenditures are accounted for under special revenue funds.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate. See Note E, last sentence.
The Board receives payments for Vocational Rehab under state contracts in which the Board provides services as a vendor and therefore, these funds are not subject to the Texas Grant Management Standards.