Notes to SEFA
Accounting Policies: The accompanying Schedule of Expenditures of Federal/State Awards includes the federal grant activity of Willacy County, Texas and is presented in the modified accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Guidance 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 schedule may differ from amounts presented in, or used in the preparation of the basis financial statements. The Federal/state grant funds were accounted for in the Governmental Funds. The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. The Governmental Fund types are accounted for using a current financial resources measurement focus. With the Governmental Fund type measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements of these funds presented increases (i.e. revenues and other financing sources) and decreased (i.e. expenditures and other financing uses) in net current assets. The modified accrual basis of accounting is used for the Governmental Fund types. This basis of accounting recognized revenues in the accounting period in which they become susceptible to accrual, i.e. both measurable and available and expenditures in the accounting period in which the fund liability is incurred, if measurable, except for certain compensated absences, claims and judgements, which are recognized when the obligations are expected to be liquidated and expendable available financial resources.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.