Notes to SEFA
Title: NOTE 3: ACCRUED AND UNEARNED REIMBURSEMENT
Accounting Policies: The Single Audit is the performance of a uniform audit of all the School System’s federal grants in conjunction with the annual audit of the basic financial statements. The adoption of such a procedure was formalized by Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements of Federal Awards (Uniform Guidance). The Single Audit fulfills all the Federal agencies’ audit requirements, which include financial, compliance and the adequacy of internal control. The programs tested as major programs are indicated by an asterisk, placed at the total expenditures of the applicable program, on the Schedule of Expenditures of Federal Awards and on the Schedule of Findings and Questioned Costs. The accompanying Schedule of Expenditure of Federal Awards has been prepared on the modified accrual basis of accounting. Grant revenues are recorded for financial reporting purposes when expenditures are made in accordance with the requirements of the respective grants.
De Minimis Rate Used: N
Rate Explanation: The School System’s indirect cost rate is approved annually by the Maryland State Department of Education. For the year ended June 30, 2023, the indirect cost rate was 3.14%.
Various reimbursement procedures are used for federal awards received by the School System. Consequently, timing differences between expenditures and program reimbursements can exist at the beginning and end of the fiscal year. Accrued balances at year-end represent an excess of reimbursable expenditures over cash receipts to date. Unearned balances at year-end represent an excess of cash receipts over reimbursable expenditures to date. Generally, accrued or unearned balances caused by differences in the timing of cash receipts and expenditures will be reversed in the remaining grant period or subsequent fiscal year.
Title: NOTE 4: CLUSTER PROGRAMS
Accounting Policies: The Single Audit is the performance of a uniform audit of all the School System’s federal grants in conjunction with the annual audit of the basic financial statements. The adoption of such a procedure was formalized by Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements of Federal Awards (Uniform Guidance). The Single Audit fulfills all the Federal agencies’ audit requirements, which include financial, compliance and the adequacy of internal control. The programs tested as major programs are indicated by an asterisk, placed at the total expenditures of the applicable program, on the Schedule of Expenditures of Federal Awards and on the Schedule of Findings and Questioned Costs. The accompanying Schedule of Expenditure of Federal Awards has been prepared on the modified accrual basis of accounting. Grant revenues are recorded for financial reporting purposes when expenditures are made in accordance with the requirements of the respective grants.
De Minimis Rate Used: N
Rate Explanation: The School System’s indirect cost rate is approved annually by the Maryland State Department of Education. For the year ended June 30, 2023, the indirect cost rate was 3.14%.
The following Assistance Listing Numbers (ALN’s) have been deemed a cluster program by the Office of Management and Budget, and therefore are treated as one program in determining major programs to be audited:
Title: NOTE 5: PROGRAM EXCLUSIONS
Accounting Policies: The Single Audit is the performance of a uniform audit of all the School System’s federal grants in conjunction with the annual audit of the basic financial statements. The adoption of such a procedure was formalized by Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements of Federal Awards (Uniform Guidance). The Single Audit fulfills all the Federal agencies’ audit requirements, which include financial, compliance and the adequacy of internal control. The programs tested as major programs are indicated by an asterisk, placed at the total expenditures of the applicable program, on the Schedule of Expenditures of Federal Awards and on the Schedule of Findings and Questioned Costs. The accompanying Schedule of Expenditure of Federal Awards has been prepared on the modified accrual basis of accounting. Grant revenues are recorded for financial reporting purposes when expenditures are made in accordance with the requirements of the respective grants.
De Minimis Rate Used: N
Rate Explanation: The School System’s indirect cost rate is approved annually by the Maryland State Department of Education. For the year ended June 30, 2023, the indirect cost rate was 3.14%.
Medical assistance received under ALN 93.778 has not been included in the accompanying Schedule of Expenditures of Federal Awards and is not subject to single audit testing since funding is received under a contractor-type relationship.