Notes to SEFA
Accounting Policies: Federal grant funds are considered to be expended as purchases are made under the provisions of thegrant, and accordingly, may be in advance of the reimbursements received.The Drinking Water State Revolving Funds program is a loan through the Texas Water DevelopmentBoard and not from the Federal government. Thus, the loan amount is not reported on the face of theSchedule of Federal Expenditures and federal expenditures are recorded when expenses are incurred,not when advances from loan proceeds are made.The District has not elected to use the 10% de minimis indirect cost rate as allowed by UniformGuidance.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.