Notes to SEFA
Title: Note 3 ‐ Reconciliation of the Basic Financial Statements Total
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.
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.
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. Generally, unused balances are returned to the grantor at the close of specified project periods. 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 Single Audit Act Amendments of 1996 and 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, changes in net position or cash flows of the District. National School Lunch Program non‐cash commodities are recorded at their estimated market value at the time of donation.
De Minimis Rate Used: N
Rate Explanation: Note 2 ‐ De Minimis Cost Rate
The District has elected not to use the 10% de minimis indirect cost rate as allowed under Uniform Guidance.
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.
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.
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. Generally, unused balances are returned to the grantor at the close of specified project periods. 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 Single Audit Act Amendments of 1996 and 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, changes in net position or cash flows of the District. National School Lunch Program non‐cash commodities are recorded at their estimated market value at the time of donation.
De Minimis Rate Used: N
Rate Explanation: Note 2 ‐ De Minimis Cost Rate
The District has elected not to use the 10% de minimis indirect cost rate as allowed under Uniform Guidance.
Federal Awards reported in the general fund are summarized as follows:
See notes to SEFA for table/chart.