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<br />City of Paris, Texas <br />Notes on Accounting Policies for Federal Awards <br />Year Ended September 30, 2005 <br /> <br />N otel: Basis of Presentation <br /> <br />The accompanying schedule of expenditures of federal awards includes the federal grant activity of the City of Paris, <br />Texas, and is presented on the modified accrual basis of accounting. The information in this schedule is presented in <br />accordance with the requirements of OMB Circular A-133, Audits of States, Local Governments, and Non-Profit <br />Organizations. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in <br />the preparation of, the [mancial statements. <br /> <br />117 <br />