Notes to SEFA
Title: Note 1: BASIS OF PRESENTATION OF SCHEDULE OF EXPENDITURES OF FEDERAL AND ST
Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles as found in the Uniform Guidance for federal awards and UGMS or TxGMS, depending on grant date, for state of Texas awards. The Organization has elected not to use the 10% de minimus indirect cost rate allowed under the Uniform Guidance. Additionally, the Organization did not receive any noncash assistance, federal loans, or federally funded insurance during the year ended December 31, 2022.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The accompanying Schedule of Expenditures of Federal and State of Texas Awards (the Schedule) presents the federal and state of Texas program fund expenditures of all federal and state of Texas award programs of Lone Star Legal Aid (the Organization) for the year ended December 31, 2022. The information in this schedule 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), the LSC Audit Guide for Recipients and Auditors and Compliance Supplement for Audits of LSC Recipients; and Texas Grant Management Standards. Therefore, some amounts presented in this schedule may differ from amounts presented in or used in the preparation of the Organizations financial statements.In December 2021, the Texas Comptroller published the Texas Grant Management Standards (TxGMS) which replaces Uniform Grant Management Standards (UGMS). TxGMS applies to state grants or contracts that begin on or after January 1, 2022.
Title: Note 3: RELATIONSHIP TO FINANCIAL REPORTS SUBMITTED TO GRANTOR AGENCIES
Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles as found in the Uniform Guidance for federal awards and UGMS or TxGMS, depending on grant date, for state of Texas awards. The Organization has elected not to use the 10% de minimus indirect cost rate allowed under the Uniform Guidance. Additionally, the Organization did not receive any noncash assistance, federal loans, or federally funded insurance during the year ended December 31, 2022.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
Amounts reflected in the financial reports filed with grantor agencies for the programs and the supplementary schedules may not agree because of accruals included in the next report filed with the agencies, matching requirements not included in the Schedule of Expenditures of Federal and State of Texas Awards and different program year ends.