Title: Note 2 ‐ Basis of Presentation
Accounting Policies: Note 1 ‐ Summary of Significant Accounting Policies
The District accounts for all awards under federal programs in the General and Certain Special Revenue Funds in accordance
with the Texas Education Agency's Financial Accountability System Resource Guide. These programs are accounted for using
a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities
generally are included on the balance sheet. Operating statements of these funds present increases (i.e. revenues and other
financing sources) and decreases (i.e. expenditures and other financing uses) in net current assets.
The modified accrual basis of accounting is used for these funds. This basis of accounting recognizes revenues in the
accounting period in which they become susceptible to accrual, i.e., both measurable and available, and expenditures in the
accounting period in which the liability is incurred, if measurable, except for certain compensated absences and claims and
judgments, which are recognized when the obligations are expected to be liquidated with expendable available financial
resources. Expenditures are also recognized following the cost principles contained in the Uniform Guidance, wherein
certain types of expenditures are not allowable or are limited to reimbursement. Pass‐through entity identifying numbers
are presented where available.
Federal grant funds are considered to be earned to the extent of expenditures made under the provisions of the grant, and,
accordingly, when such funds are received, they are recorded as deferred revenues until earned. Generally, unused
balances are returned to the grantor at the close of specified project periods. The District has elected not to use the 10‐
percent de minimis indirect cost rate allowed under the Uniform Guidance.
De Minimis Rate Used: N
Rate Explanation: See note 1, paragraph 3, last sentence
The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal grant activity of the
District under programs of the federal government for the year ended August 31, 2023. The information in this schedule is
presented in accordance with the requirements of the Office of Management and Budget (OMB) 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, changes in net position or cash flows of the District.
Title: Note 3 ‐ Reconciliation to Basic Financial Statements
Accounting Policies: Note 1 ‐ Summary of Significant Accounting Policies
The District accounts for all awards under federal programs in the General and Certain Special Revenue Funds in accordance
with the Texas Education Agency's Financial Accountability System Resource Guide. These programs are accounted for using
a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities
generally are included on the balance sheet. Operating statements of these funds present increases (i.e. revenues and other
financing sources) and decreases (i.e. expenditures and other financing uses) in net current assets.
The modified accrual basis of accounting is used for these funds. This basis of accounting recognizes revenues in the
accounting period in which they become susceptible to accrual, i.e., both measurable and available, and expenditures in the
accounting period in which the liability is incurred, if measurable, except for certain compensated absences and claims and
judgments, which are recognized when the obligations are expected to be liquidated with expendable available financial
resources. Expenditures are also recognized following the cost principles contained in the Uniform Guidance, wherein
certain types of expenditures are not allowable or are limited to reimbursement. Pass‐through entity identifying numbers
are presented where available.
Federal grant funds are considered to be earned to the extent of expenditures made under the provisions of the grant, and,
accordingly, when such funds are received, they are recorded as deferred revenues until earned. Generally, unused
balances are returned to the grantor at the close of specified project periods. The District has elected not to use the 10‐
percent de minimis indirect cost rate allowed under the Uniform Guidance.
De Minimis Rate Used: N
Rate Explanation: See note 1, paragraph 3, last sentence
The following table reconciles expenditures per the Schedule of Expenditures of Federal Awards to the federal program
revenues per the Statement of Revenues, Expenditures, and Changes in Fund Balance – Governmental Funds. See notes to SEFA for table/chart.
Title: Note 4 ‐ General Fund Expenditures
Accounting Policies: Note 1 ‐ Summary of Significant Accounting Policies
The District accounts for all awards under federal programs in the General and Certain Special Revenue Funds in accordance
with the Texas Education Agency's Financial Accountability System Resource Guide. These programs are accounted for using
a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities
generally are included on the balance sheet. Operating statements of these funds present increases (i.e. revenues and other
financing sources) and decreases (i.e. expenditures and other financing uses) in net current assets.
The modified accrual basis of accounting is used for these funds. This basis of accounting recognizes revenues in the
accounting period in which they become susceptible to accrual, i.e., both measurable and available, and expenditures in the
accounting period in which the liability is incurred, if measurable, except for certain compensated absences and claims and
judgments, which are recognized when the obligations are expected to be liquidated with expendable available financial
resources. Expenditures are also recognized following the cost principles contained in the Uniform Guidance, wherein
certain types of expenditures are not allowable or are limited to reimbursement. Pass‐through entity identifying numbers
are presented where available.
Federal grant funds are considered to be earned to the extent of expenditures made under the provisions of the grant, and,
accordingly, when such funds are received, they are recorded as deferred revenues until earned. Generally, unused
balances are returned to the grantor at the close of specified project periods. The District has elected not to use the 10‐
percent de minimis indirect cost rate allowed under the Uniform Guidance.
De Minimis Rate Used: N
Rate Explanation: See note 1, paragraph 3, last sentence
Federal awards reported in the general fund are summarized as follows: See notes to SEFA for table/chart.