Notes to SEFA
Accounting Policies: ∗ For all Federal programs, the District uses the fund types specified in the Texas Education Agency’s
Financial Accountability System Resource Guide. Special revenue funds are used to account for
resources restricted to, or designated for, specific purposes by a grantor. Federal and state financial
assistance generally is accounted for in a Special Revenue Fund. Generally, unused balances are returned
to the grantor at the close of specified project periods.
∗ 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 grant funds were accounted for in a Special Revenue Fund or, in some instances, in the General
Fund which are Governmental Fund type funds.
With this measurement focus, only current assets and current liabilities and the fund balance are included
on the balance sheet. Operating statements of these funds present increases and decreases in net current
assets. The modified accrual basis of accounting is used for the Governmental Fund types. 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 fund liability is
incurred, if measurable, except for unmatured interest on General Long-Term Debt, which is recognized
when due, and certain compensated absences and claims and judgments, which are recognized when the
obligations are expected to be liquidated with expendable available financial resources. 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 unearned revenues until earned.
∗ The District must submit to the pass-through entity, no later than 90 calendar days (or an earlier date as
agreed upon by the pass-through entity and the District) after the end date of the period of performance, all
financial, performance, and other reports as required by the terms and conditions of the Federal award. The
Federal awarding agency or pass-through entity may approve extensions when requested and justified by
the non-federal entity, as applicable (2 CFR 200.344(a)).
Unless the Federal awarding agency or pass-through entity authorizes an extension, a non-federal entity
must liquidate all financial obligations incurred under the Federal award no later than 120 calendar days
after the end date of the performance as specified in the terms and conditions of the Federal award (2 CFR
200.344(b)).
∗ CFDA numbers for commodity assistance are the CFDA numbers of the programs under which USDA
donated the commodities.
∗ Indirect cost reimbursement for federal programs for this fiscal year was received in the amount of
$80,286.
De Minimis Rate Used: N
Rate Explanation: THE AUDITEE DID NOT USE THE DE MINIMIS COST RATE