Notes to SEFA
Accounting Policies: Principles of Consolidation: The consolidated financial statements include the accounts of the Association and the Foundation because Texas Rural Water Association has both control and an economic interest in the Foundation. All significant intercompany accounts and transactions have been eliminated in consolidation. The entities are collectively referred to as the Association within. Basis of accounting: The Association uses the accrual basis of accounting. Revenues are recorded as earned and expenses recorded as incurred. See Reporting package notes for additional policies.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.