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<br />City of Paris, Texas <br />Notes On Accounting Policies For State Awards <br />Year Ended September 30, 2006 <br /> <br />N ote1: Basis of Presentation <br /> <br />The accompanying schedule of expenditures of state awards includes the state 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 <br />presented in accordance with the requirements of the Comptroller General of the United States and the State of <br />Texas Single Audit Circular. Therefore, some amounts presented in this schedule may differ from amounts <br />presented in, or used in the preparation of, the financial statements. <br /> <br />124 <br />