Audit 21325

Accounting Policies: Basis of PresentationThe accompanying Schedule of Expenditures of Federal Awards (Schedule) includes the federal activity of theBoles Independent School District and is presented on the modified accrual basis of accounting. Expendituresare recognized in the accounting period in which a fund liability occurs. Funds are considered earned to theextent of expenditures made.The information in the Schedule is presented in accordance with the requirements of Title 2 U.S. Code of FederalRegulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements forFederal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operationsof the District, it is not intended to and does not present the financial position or changes in net position of theDistrict. Therefore, some amounts presented in this schedule may differ from amounts presented in or used inthe preparation of the basic financial statements.B. Summary of Significant Accounting PoliciesThe 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.C. Food DistributionNonmonetary assistance is reported in the Schedule at the fair market value of the commodities received andused. No provision has been made for amounts on hand on August 31, 2022.D. Indirect CostThe District has elected not to use the 10% de minimis indirect cost rate as allowed under the UniformGuidance. 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.