Audit 51674

Accounting Policies: 1. GeneralThe Schedule of Expenditures of Federal and State Awards (SEFSA) presents the activity of all applicable federal andstate awards of Deep East Texas Council of Governments and Economic Development District (DETCOG). DETCOG'sreporting entity is defined in Note 1 of the basic financial statements. Federal and state awards received directly fromfederal and state agencies, as well as federal awards passed through other governmental agencies, are included onthe SEFSA. The information in the SEFSA is presented in accordance with the requirements of Title 2 U.S. Code ofFederal Regulations Part 200, Uniform Administrative Requirements, Costs, Principles, and Audit Requirements forFederal Awards (Uniform Guidance) and the State of Texas Single Audit Circular . Therefore, some amounts presentedin this schedule may differ from amounts presented in, or used in the preparation of the financial statements.2. Basis of AccountingThe SEFSA is prepared on the modified accrual basis of accounting. The modified accrual basis of accounting isdescribed in the notes to financial statements. Federal and state grants are considered to be earned to the extent ofexpenditures made under the provisions of the grant; and accordingly, when such funds are received, they arerecorded as unearned revenue until earned.3. Relationship to Basic Financial StatementsFederal and state award programs are reported in DETCOG's fund financial statements. Total federal and state awardsper the accompanying SEFSA include all federal and state revenues.4. Other NotesThe period of availability of federal and state grant funds for the purpose of liquidation of outstanding obligationsmade on or before the ending date of the project period extended 30 days beyond the project period ending date,in accordance with provisions in Section H, Period of Availability of Federal Funds, Part 3, Uniform Guidance .DETCOG has used an indirect cost rate, fringe benefit, and space allocation rate approved by federal and stateagencies.5. State Awards GuidelinesState awards are subject to the State of Texas Single Audit Circular (TSAC) requirements. Such guidelines areconsistent with those required under the Uniform Guidance and Government Auditing Standards , issued by theComptroller General of the United States. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.