Notes to SEFA
Title: NOTE B - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Accounting Policies: NOTE A - BASIS OF PRESENTATION The accompanying schedule of expenditures of federal and state awards (the Schedule) includes the federal and state award activity of Texoma Council of Governments under programs of the federal and state government for the year ended April 30, 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) and Texas Grant Management Standards. Because the Schedule presents only a selected portion of the operations of Texoma Council of Governments, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Texoma Council of Governments.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate. See Note C.
The Council accounts for all federal and state awards under programs of the federal and state government in the Special Revenue Funds. These programs are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities are generally included on the balance sheet. Operating statements of these funds present increases (i.e. revenues and other financing sources) and decreases (i.e. expenditures and other financing uses) in net current assets. The modified accrual basis of accounting is used for these funds. This basis of accounting recognizes revenues in the accounting period in which they become susceptible to accrual, i.e. both measurable and available, and expenditures in the accounting period in which the liability is incurred, if measurable, except for certain compensated absences and claims and judgments, which are recognized when the obligations are expected to be liquidated with expendable available financial resources. Federal and state grant funds for governmental funds are considered to be earned to the extent of expenditures made under the provisions of the grant. When such funds are advanced to the Council, they are recorded as unearned revenues until earned. Otherwise, federal and state grant funds are received on a reimbursement basis from the respective federal or state program agencies.
Title: NOTE C - INDIRECT COST RATE
Accounting Policies: NOTE A - BASIS OF PRESENTATION The accompanying schedule of expenditures of federal and state awards (the Schedule) includes the federal and state award activity of Texoma Council of Governments under programs of the federal and state government for the year ended April 30, 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) and Texas Grant Management Standards. Because the Schedule presents only a selected portion of the operations of Texoma Council of Governments, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Texoma Council of Governments.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate. See Note C.
Texoma Council of Governments has elected to not use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.