Notes to SEFA
Title: Note 3. Porter County Education Services (PCES)
Accounting Policies: Note 1. Summary of Significant Accounting PoliciesA. Basis of PresentationThe accompanying Schedule of Expenditures of Federal Awards (SEFA) includes the federalgrant activity of the School Corporation under programs of the federal government for theyears ended June 30, 2021 and 2022. The information in the SEFA is presented in accordancewith the requirements of Title 2 U.S. Code of Federal Regulations Part 200, UniformAdministrative Requirements, Cost Principles, and Audit Requirements for Federal Awards(Uniform Guidance). Because the SEFA presents only a select portion of the operations ofthe School Corporation, it is not intended to and does not present the financial position of theSchool Corporation.The Uniform Guidance requires an annual audit of nonfederal entities expending a totalamount of federal awards equal to or in excess of $750,000 in any fiscal year unless byconstitution or statute a less frequent audit is required. In accordance with Indiana Code(IC 5-11-1-25), audits of school corporations shall be conducted biennially. Such audits shallinclude both years within the biennial period.B. Other Significant Accounting PoliciesExpenditures reported on the SEFA are reported on the cash basis of accounting. Suchexpenditures are recognized following, as applicable, either the cost principles in OMBCircular A-87, Cost Principles for State, Local, and Indian Tribal Governments, or the costprinciples contained in Uniform Guidance, wherein certain types of expenditures are notallowed or are limited as to reimbursement. When federal grants are received on a reimbursementbasis, the federal awards are considered expended when the reimbursement isreceived.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
Note 3. Porter County Education Services (PCES)The School Corporation is a member of the Porter County Education Services (Cooperative). Asa result, some of the activity for the Special Education Cluster (IDEA) that is presented on theSEFA is not presented as receipts and disbursements in the financial statement for the SchoolCorporation. This activity is presented in the financial statement of the Cooperative's fiscal agent.