Notes to SEFA
Title: 1. BASIS OF PRESENTATION
Accounting Policies: 2. BASIS OF ACCOUNTING The Schedule of Expenditures of Federal Awards is prepared on the modified accrual basis of accounting. Expenditures are recognized when the related fund liability is incurred. Federal grants are considered to be earned to the extent of expenditures made under the provision of the grant and are received on a reimbursement basis.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate. See Note 3.
The Schedule of Expenditures of Federal Awards (SEFA) presents the activity of all applicable federal awards of the City of Round Rock, Texas. The City's reporting entity is defined in the notes of the basic financial statements. Federal financial assistance received directly from federal agencies as well as federal financial assistance passed through other governmental agencies is included on the Schedule of Expenditures of Federal Awards. The information on this schedule is presented in accordance with the requirements of Uniform Guidance, Audits of States, Local Governments and Non-Profit Organizations. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of the basic financial statements.
Title: 3. INDIRECT COST RATE
Accounting Policies: 2. BASIS OF ACCOUNTING The Schedule of Expenditures of Federal Awards is prepared on the modified accrual basis of accounting. Expenditures are recognized when the related fund liability is incurred. Federal grants are considered to be earned to the extent of expenditures made under the provision of the grant and are received on a reimbursement basis.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate. See Note 3.
The City of Round Rock has not elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
Title: 4. EXPENDITURES INCURRED IN A PRIOR YEAR
Accounting Policies: 2. BASIS OF ACCOUNTING The Schedule of Expenditures of Federal Awards is prepared on the modified accrual basis of accounting. Expenditures are recognized when the related fund liability is incurred. Federal grants are considered to be earned to the extent of expenditures made under the provision of the grant and are received on a reimbursement basis.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate. See Note 3.
Expenditures recorded in the SEFA, associated with Tropical Cyclone Ida that were passed through the Texas A&M Engineering Extension Service to the City of Round Rock from the U.S. Department of Homeland Security, were incurred in a prior year. Even though the expenditures were incurred in a prior year, the final invoices were not approved for payment until FY 2022. Accordingly, these expenditures are being reported on the City of Round Rock's SEFA in the year they were approved for payment, in compliance with the OMB Compliance Supplement.