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 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, 3rd paragraph and 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 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, 3rd paragraph and last sentence.
The following is a reconciliation of expenditures of federal award programs per Exhibit K‐1 Schedule of
Expenditures of Federal Awards in this report and federal revenues reported on Exhibit C‐3 of the District’s Annual
Comprehensive Financial Report: 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 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, 3rd paragraph and last sentence.
Federal awards reported in the general fund are summarized as follows: See notes to SEFA for table/chart.