Audit 14549

Title: RECONCILIATION OF FEDERAL REVENUES AND THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS Accounting Policies: The Schedule of Expenditures of Federal Awards (SEFA) presents the activity of all applicable federal award programs of Moody Independent School District. The District’s reporting entity is defined in Note I of the financial statements. Federal awards received directly from federal agencies, as well as federal awards passed through other government agencies, are included on the SEFA. The Schedule of Expenditures of Federal Awards is presented using the modified accrual basis of accounting. The modified accrual basis of accounting is described in Note I of the financial statements. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, some of the amounts presented in the SEFA may differ from amounts presented in, or used in the preparation of, the financial statements. De Minimis Rate Used: N Rate Explanation: The District did not elect to apply the 10% de minimis indirect cost rate as described at 2CFR §200.414(f) – Indirect (F&A) Costs. The following is a reconciliation of expenditures of federal awards in the SEFA and federal program revenues in the Statement of Revenues, Expenditures and Changes in Fund Balance of the governmental funds. Federal revenues per the Statement of Revenues, Expenditures and Changes in Fund Balance - Governmental Funds (Exhibit C-3) $ 1,734,185 School health and related services revenue (SHARS) (74,169) Federal flood control funds (6,382) Federal expenditures per the Schedule of Expenditures of Federal Awards (Exhibit K-1) $ 1,653,634

Title: PASS-THROUGH EXPENDITURES Accounting Policies: The Schedule of Expenditures of Federal Awards (SEFA) presents the activity of all applicable federal award programs of Moody Independent School District. The District’s reporting entity is defined in Note I of the financial statements. Federal awards received directly from federal agencies, as well as federal awards passed through other government agencies, are included on the SEFA. The Schedule of Expenditures of Federal Awards is presented using the modified accrual basis of accounting. The modified accrual basis of accounting is described in Note I of the financial statements. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, some of the amounts presented in the SEFA may differ from amounts presented in, or used in the preparation of, the financial statements. De Minimis Rate Used: N Rate Explanation: The District did not elect to apply the 10% de minimis indirect cost rate as described at 2CFR §200.414(f) – Indirect (F&A) Costs. None of the federal programs expended by the District were provided to subrecipients.