Notes to SEFA
Accounting Policies: NOTE A - BASIS OF PRESENTATIONThe accompanying Schedule of Expenditures of Federal Awards (the Schedule) includesthe federal award activity of Vandalia-Butler City School District (the School District)under programs of the federal government for the year ended June 30, 2022. Theinformation on this Schedule is prepared in accordance with the requirements of Title 2U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, CostPrinciples, and Audit Requirements for Federal Awards (Uniform Guidance). Becausethe Schedule presents only a selected portion of the operations of the School District, it isnot intended to and does not present the financial position or changes in net position ofthe school district.NOTE B SIGNIFICANT ACCOUNTING POLICIESExpenditures reported on the Schedule are reported on the cash basis of accounting. Suchexpenditures are recognized following the cost principles contained in Title 2 U.S. Codeof Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles,and Audit Requirements for Federal Awards, wherein certain types of expenditures mayor may not be allowable or may be limited as to reimbursement. The School District haselected not to use the 10-percent de minimis indirect cost rate as allowed under theUniform Guidance.NOTE C CHILD NUTRITION CLUSTERThe School District commingles cash receipts from the U.S. Department of Agriculturewith similar State grants. When reporting expenditures on this Schedule, the SchoolDistrict assumes it expands federal monies first.NOTE D FOOD DONATION PROGRAMThe School District reports commodities consumed on the Schedule at the fair value. TheSchool District allocated donated food commodities to the respective program thatbenefited from the use of those donated food commodities.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.