Notes to SEFA
Accounting Policies: Basis of Presentation:The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federalaward activity of the District under programs of the federal government for the year ended August31, 2022. The information on this Schedule is prepared in accordance with the requirements of Title2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles,and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presentsonly a selected portion of the operations of the District, it is not intended to and does not present thefinancial position, changes in net assets, or cash flows of the District.Summary of Significant Accounting Policies:The accounting and financial reporting treatment applied to a fund is determined by its measurementfocus. The governmental funds are accounted for using a current-financial-resources measurementfocus. All federal grant funds are accounted for in the Special Revenue Fund, a component of thegovernmental funds. With this measurement focus, only current assets and current liabilities,generally, are included on the balance sheet. Operating statements of these funds present 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 the governmental funds. This basis of accountingrecognizes revenues in the accounting period in which they become susceptible to accrual(measurable and available) and expenditures in the accounting period in which the fund liability isincurred, except that principal and interest on general long-term debt are recognized when due.Federal grant funds are considered to be earned when all eligibility requirements have been met. Anyexcess of revenues or expenditures is recorded as unearned revenues or accounts receivable,respectively.The disbursement of funds received under federal grant programs generally requires compliance withterms and conditions specified in the grant agreements and is subject to audit by the grantor agencies.Any disallowed claims resulting from such audits could become a liability of the General Fund. Inthe opinion of management, such disallowed claims, if any, will not have a material effect on any ofthe financial statements of the individual fund types or on the overall financial position of the Districtat August 31, 2022.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.