Notes to SEFA
Accounting Policies: Basis of Presentation
The accompanying Schedule of Expenditures of Federal Awards (Schedule) includes the federal activity of
the Rains Independent School District and is presented on the modified accrual basis of accounting.
Expenditures are recognized in the accounting period in which a fund liability occurs. Funds are considered
earned to the extent of expenditures made.
The information in the Schedule is presented in accordance with the requirements of Title 2 U.S. Code of
Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit
Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion
of the operations of the District, it is not intended to and does not present the financial position or changes in
net position of the District. Therefore, some amounts presented in this schedule may differ from amounts
presented in or used in the preparation of the basic financial statements.
B. Summary of Significant Accounting Policies
The accounting and financial reporting treatment applied to a fund is determined by its measurement focus.
The governmental fund types are accounted for using a current financial resources measurement focus. All
federal expenditures were accounted for in the General Fund and Special Revenue Funds which are
governmental fund types. Such expenditures are recognized following the cost principles contained in the
Uniform Guidance, wherein certain types of expenditures are not allowed or are limited as to reimbursement.
No federal financial assistance has been provided to a subrecipient.
Federal grants are considered to be earned to the extent of expenditures made under the provisions of the
grant.
De Minimis Rate Used: N
Rate Explanation: Indirect Cost
The District has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform
Guidance.