Title: Note 2 - Basis of Presentation
Accounting Policies: Note 1 - Summary of Significant Accounting Policies
The District utilizes the fund types specified in the Texas Education Agency’s Financial Accountability System Resource
Guide.
Federal and state awards generally are accounted for in a Special Revenue Fund, a component of the Governmental Fund
type. A Special Revenue Fund is used to account for resources restricted to, or committed for, specific purposes by a
grantor.
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. With this
measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating
statements of these funds represent 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 also 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 unearned 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, paragraph 5, 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 on a selected portion of the operations of the District, it is not intended to and does not
present the financial position, changes in net assets 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 utilizes the fund types specified in the Texas Education Agency’s Financial Accountability System Resource
Guide.
Federal and state awards generally are accounted for in a Special Revenue Fund, a component of the Governmental Fund
type. A Special Revenue Fund is used to account for resources restricted to, or committed for, specific purposes by a
grantor.
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. With this
measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating
statements of these funds represent 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 also 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 unearned 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, paragraph 5, last sentence.
The following is a reconciliation of expenditures of federal award programs per the Schedule of Expenditures of Federal
Awards 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 utilizes the fund types specified in the Texas Education Agency’s Financial Accountability System Resource
Guide.
Federal and state awards generally are accounted for in a Special Revenue Fund, a component of the Governmental Fund
type. A Special Revenue Fund is used to account for resources restricted to, or committed for, specific purposes by a
grantor.
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. With this
measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating
statements of these funds represent 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 also 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 unearned 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, paragraph 5, last sentence.
Federal awards reported in the general fund are summarized as follows: "See notes to SEFA for table/chart."