Audit 16620

Accounting Policies: Notes to Schedule of Expenditures of Federal AwardsAugust 31, 2022: (1) Basis of Presentation - The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of Lorena Independent School District (the District) under programs of the federal government for the year ended August 31, 2022. 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). 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. (2) Summary of Significant Accounting Policies - Expenditures 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. Negative amounts shown on the schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Pass-through entity identifying numbers are presented where available. (3) Indirect Cost Rate - No indirect costs were claimed by the District for the year ended August 31, 2022. (4) Reconciliation to Financial Statements - Following is a reconciliation of the schedule of expenditures of federal awards to total federal program revenues per the statement of revenues, expenditures and changes in fund balances governmental funds for the year ended August 31, 2022:Expenditures per Schedule of Expenditures of Federal Awards $ 2,275,006 minus SHARS revenue $287,044 equals Total federal program revenues per Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds $ 2,562,050 De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.