Notes to SEFA
Accounting Policies: NOTE 1: BASIS OF ACCOUNTING The accompanying schedule of expenditures of federal and State awards (SEFSA) includes the federal and State grant activity of SETRAC, and is presented on the accrual basis of accounting. The SEFSA 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) and the State of Texas Single Audit Circular. Therefore, some amounts presented in this SEFSA may differ from amounts presented in, or used in the preparation of, the basic financial statements. NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Expenditures reported on the SEFSA are reported on the modified accrual basis of accounting. These expenditures are recognized following the cost principles contained in the Uniform Guidance and the State of Texas Single Audit Circular, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the SEFSA, if any, represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. NOTE 3: INDIRECT COST RATE SETRAC elected not to use the 10% de minimum indirect cost rate allowed under the Uniform Guidance. NOTE 4: DONATED PERSONAL PROTECTIVE EQUIPMENT During the emergency period of COVID-19, federal agencies and recipients of federal assistance funds donated personal protective equipment (PPE) to non-federal entities. In connection with that donation, the recipient must disclose the estimated value of the donated PPE, but such amounts are not included in the SEFSA. SETRAC did not receive PPE donations during the reporting year. NOTE 5: RECONCILIATION TO FEDERAL AND STATE GRANT REVENUES Total Expenditures of Federal and State Awards $5,853,966 Unexpended Restricted Grant Revenue $170,315 Statement of Activities Grant Revenues $6,024,281
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.