Notes to SEFA
Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (Schedule) includes the federal activity ofthe Royse City Independent School District and is presented on the modified accrual basis of accounting.Expenditures are recognized in the accounting period in which a fund liability occurs. Funds are consideredearned to the extent of expenditures made.The information in the Schedule is presented in accordance with the requirements of Title 2 U.S. Code ofFederal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and AuditRequirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portionof the operations of the District, it is not intended to and does not present the financial position or changes innet position of the District. Therefore, some amounts presented in this schedule may differ from amountspresented in or used in the preparation of the basic financial statements. 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. Allfederal expenditures were accounted for in the General Fund and Special Revenue Funds which aregovernmental fund types. Such expenditures are recognized following the cost principles contained in theUniform Guidance, wherein certain types of expenditures are not allowed or are limited as to reimbursement.No federal financial assistance has been provided to a subrecipient.Federal grants are considered to be earned to the extent of expenditures made under the provisions of thegrant.
De Minimis Rate Used: N
Rate Explanation: The District has elected not to use the 10% de minimis indirect cost rate as allowed under the UniformGuidance.