Audit 16342

Accounting Policies: I. PURPOSE OF SCHEDULEThe accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes thefederal award activity of Pleasant Hill School District under programs of the federal governmentfor the year ended June 30, 2022. The information in the Schedule is presented in accordance withthe requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200; Uniform AdministrativeRequirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance).Because the Schedule presents only a selected portion of the activities of the District, it is notintended to and does not present the financial position, changes in net position, nor the operatingfunds revenues and expenses.II. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES FOR FEDERAL AWARDEXPENDITURESA. Basis of PresentationExpenditures reported on the Schedule are reported on the modified accrual basis of accounting.Such 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. TheDistrict has elected not to use the 10 percent de minimis indirect cost rate allowed under theUniform Guidance.B. Federal Financial AssistancePursuant to the Uniform Guidance, federal financial assistance is defined as assistance provided bya federal agency, either directly or indirectly, in the form of grants, contracts, cooperativeagreements, loans, loan guarantees, property, interest subsidies, insurance, or direct appropriations.Accordingly, non-monetary federal assistance, including federal surplus property, is included infederal financial assistance and, therefore, is reported on the schedule of expenditures of federalawards, if applicable. Federal financial assistance does not include direct federal cash assistance toindividuals. Solicited contracts between the state and federal government for which the federalgovernment procures tangible goods or services are not considered to be federal financialassistance.C. Major ProgramsThe Uniform Guidance establishes criteria to be used in defining major federal financial assistanceprograms. Major programs of the District are those programs selected for testing by the auditorusing a risk assessment model, as well as certain minimum expenditure requirements, as outlinedin the Uniform Guidance.D. Reporting EntityThe reporting entity is fully described in the notes to the Districts basic financial statements.Additionally, the schedule of expenditures of federal awards includes all federal programsadministered by the District for the year ended June 30, 2022.E. Revenue and Expenditure RecognitionThe receipt and expenditure of federal awards are accounted for under the modified accrual basisof accounting. Revenues are recorded as received in cash or on the accrual basis where measurableand available. Expenditures are recorded when the liability is incurred. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.