Notes to SEFA
Accounting Policies: A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESGeneralThe accompanying Schedule of Expenditures of Federal Awards presents the activity of all federal awardprograms of Clay County, Texas (the "County").Basis of AccountingThe accompanying Schedule of Expenditures of Federal Awards are presented using the modified accrualbasis of accounting for governmental funds.B - CONTINGENCIESThe County participates in several federal grant programs, which are governed by various rules and regulationsof the grantor agencies. Costs charged to the respective grant programs are subject to audit and adjustment bythe grantor agencies; therefore, to the extent that the County has not complied with the rules and regulationsgoverning the grants, refunds of any money received may be required and the collectability of any relatedreceivable at September 30, 2022 may be impaired. In the opinion of management, there are no significantcontingent liabilities relating to compliance with the rules and regulations governing the respective grants.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.