Notes to SEFA
Title: I. BASIS OF PRESENTATION
Accounting Policies: FOR ALL FEDERAL PROGRAMS, THE DISTRICT USES THE FUND TYPES SPECIFIED IN 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. EXPENDITURES REPORTED ON THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS ARE REPORTED ON THE MODIFIED ACCRUAL BASIS OF ACCOUNTING. THESE EXPENDITURES ARE RECOGNIZED FOLLOWING THE COST PRINCIPLES CONTAINED IN THE UNIFORM GUIDANCE, WHEREIN CERTAIN TYPES OF EXPENDITURES ARE NOT ALLOWABLE OR ARE LIMITED AS TO REIMBURSEMENT. NEGATIVE AMOUNTS SHOWN ON THE SCHEDULE, IF ANY, REPRESENT ADJUSTMENTS OR CREDITS MADE IN THE NORMAL COURSE OF BUSINESS TO AMOUNTS REPORTED AS EXPENDITURES IN PRIOR YEARS. THE DISTRICT HAS ELECTED NOT TO USE THE 10-PERCENT DE MINIMIS INDIRECT COST RATE ALLOWED UNDER THE UNIFORM GUIDANCE. THE SHARS AND MAC PROGRAM EXPENDITURES ARE NOT SPECIFICALLY ATTRIBUTABLE TO THE FEDERAL EXPENDITURES SOURCE AND ARE SHOWN ON THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS FOR BALANCING PURPOSES ONLY. NONMONETARY ASSISTANCE IS REPORTED IN THE SCHEDULE AT FAIR MARKET OF COMMODITIES RECEIVED AND DISBURSED.
De Minimis Rate Used: N
Rate Explanation: THE DISTRICT USED INDIRECT COST RATES THAT ARE ALLOWABLE IN ACCORDANCE WITH THE REQUIREMENTS OF THE FEDERAL AWARDS TO WHICH APPLY AND THE PROVISIONS OF TITLE 2 OF THE CODE OF FEDERAL REGULATIONS (2 CFR) PART 200-UNIFORM ADMINISTRATIVE REQUIREMENTS, COST PRINCIPLES, AND AUDIT REQUIREMENTS FOR FEDRAL AWARDS-APPENDIX VII TO PART 200-STATES AND LOCAL GOVERNMENT AND INDIAN TRIBE INDIRECT COST PROPOSALS. THE US DEPARTMENT OF EDUCATION HAS GIVEN THE TEXAS EDUCATION AGENCY (TEA) AUTHORITY TO ISSUE INDIRECT COST RATES FOR INDEPENDENT SCHOOL DISTRICTS. TO RECOVER ANY INDIRECT COSTS, THE INDEPENDENT SCHOOL DISTRICT MUST REQUEST AND RECEIVE A NEW INDIRECT COST RATE FOR EVERY SCHOOL YEAR. TEA ISSUES TWO INDIRECT COST RATES TO INDEPENDENT SCHOOL DISTRICTS, A RESTRICTED RATE AND AN UNRESTRICTED RATE. THE RESTRICTED RATE GRANTED TO MARSHALL ISD EFFECTIVE 7/1/22 THRU 6/30/23 WAS 5.313% AND THE UNRESTRICTED RATE FOR THAT SAME TIME PERIOD WAS 14.179%. THE RESTRICTED RATE GRANTED TO MARSHALL ISD EFFECTIVE 7/1/23 THRU 6/30/24 WAS 5.272% AND THE UNRESTRICTED RATE FOR THAT SAME TIME PERIOD WAS 14.211%.
THE ACCOMPANYING SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS INCLUDES THE FEDERAL GRANT ACTIVITY OF THE DISTRICT. 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"). THEREFORE, SOME AMOUNTS MAY DIFFER FROM AMOUNTS PRESENTED IN, OR USED IN THE PREPARATION OF, THE BASIC FINANCIAL STATEMENTS.
Title: II. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Accounting Policies: FOR ALL FEDERAL PROGRAMS, THE DISTRICT USES THE FUND TYPES SPECIFIED IN 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. EXPENDITURES REPORTED ON THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS ARE REPORTED ON THE MODIFIED ACCRUAL BASIS OF ACCOUNTING. THESE EXPENDITURES ARE RECOGNIZED FOLLOWING THE COST PRINCIPLES CONTAINED IN THE UNIFORM GUIDANCE, WHEREIN CERTAIN TYPES OF EXPENDITURES ARE NOT ALLOWABLE OR ARE LIMITED AS TO REIMBURSEMENT. NEGATIVE AMOUNTS SHOWN ON THE SCHEDULE, IF ANY, REPRESENT ADJUSTMENTS OR CREDITS MADE IN THE NORMAL COURSE OF BUSINESS TO AMOUNTS REPORTED AS EXPENDITURES IN PRIOR YEARS. THE DISTRICT HAS ELECTED NOT TO USE THE 10-PERCENT DE MINIMIS INDIRECT COST RATE ALLOWED UNDER THE UNIFORM GUIDANCE. THE SHARS AND MAC PROGRAM EXPENDITURES ARE NOT SPECIFICALLY ATTRIBUTABLE TO THE FEDERAL EXPENDITURES SOURCE AND ARE SHOWN ON THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS FOR BALANCING PURPOSES ONLY. NONMONETARY ASSISTANCE IS REPORTED IN THE SCHEDULE AT FAIR MARKET OF COMMODITIES RECEIVED AND DISBURSED.
De Minimis Rate Used: N
Rate Explanation: THE DISTRICT USED INDIRECT COST RATES THAT ARE ALLOWABLE IN ACCORDANCE WITH THE REQUIREMENTS OF THE FEDERAL AWARDS TO WHICH APPLY AND THE PROVISIONS OF TITLE 2 OF THE CODE OF FEDERAL REGULATIONS (2 CFR) PART 200-UNIFORM ADMINISTRATIVE REQUIREMENTS, COST PRINCIPLES, AND AUDIT REQUIREMENTS FOR FEDRAL AWARDS-APPENDIX VII TO PART 200-STATES AND LOCAL GOVERNMENT AND INDIAN TRIBE INDIRECT COST PROPOSALS. THE US DEPARTMENT OF EDUCATION HAS GIVEN THE TEXAS EDUCATION AGENCY (TEA) AUTHORITY TO ISSUE INDIRECT COST RATES FOR INDEPENDENT SCHOOL DISTRICTS. TO RECOVER ANY INDIRECT COSTS, THE INDEPENDENT SCHOOL DISTRICT MUST REQUEST AND RECEIVE A NEW INDIRECT COST RATE FOR EVERY SCHOOL YEAR. TEA ISSUES TWO INDIRECT COST RATES TO INDEPENDENT SCHOOL DISTRICTS, A RESTRICTED RATE AND AN UNRESTRICTED RATE. THE RESTRICTED RATE GRANTED TO MARSHALL ISD EFFECTIVE 7/1/22 THRU 6/30/23 WAS 5.313% AND THE UNRESTRICTED RATE FOR THAT SAME TIME PERIOD WAS 14.179%. THE RESTRICTED RATE GRANTED TO MARSHALL ISD EFFECTIVE 7/1/23 THRU 6/30/24 WAS 5.272% AND THE UNRESTRICTED RATE FOR THAT SAME TIME PERIOD WAS 14.211%.
1. FOR ALL FEDERAL PROGRAMS, THE DISTRICT USES THE FUND TYPES SPECIFIED IN 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. 2. EXPENDITURES REPORTED OF THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS ARE REPORTED ON THE MODIFIED ACCRUAL BASIS OF ACCOUNTING. THESE EXPENDITURES ARE RECOGNIZED FOLLOWING THE COST PRINCIPLES CONTAINED IN THE UNIFORM GUIDANCE, WHEREIN CERTAIN TYPES OF EXPENDITURES ARE NOT ALLOWABLE OR ARE LIMITED AS TO REIMBURSEMENT. NEGATIVE AMOUNTS SHOWN ON THE SCHEDULE, IF ANY, REPRESENT ADJUSTMENTS OR CREDITS MADE IN THE NORMAL COURSE OF BUSINESS TO AMOUNTS REPORTED AS EXPENDITURES IN PRIOR YEARS. 3. THE DISTRICT HAS ELECTED NOT TO USE THE 10-PERCENT DE MINIMIS INDIRECT COST RATE ALLOWED UNDER THE UNIFORM GUIDANCE. 4. THE SHARS AND MAC PROGRAM EXPENDITURES ARE NOT SPECIFICALLY ATTRIBUTABLE TO THE FEDERAL EXPENDITURES SOURCE AND ARE SHOWN ON THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS FOR BALANCING PURPOSES ONLY. 5. NONMONETARY ASSISTANCE IS REPORTED IN THE SCHEDULE AT FAIR MARKET VALUE OF COMMODITIES RECEIVED AND DISBURSED.