Audit 24892

Accounting Policies: Basis of PresentationThe accompanying schedule of expenditures of federal awards includes the federal grant activity of Tatum Independent School District and is presented on the modified accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. Federal grants funds are considered to be earned to the extent of expenditures made under the provisions of the grant and accordingly when such funds are received, they are recorded as deferred revenues until earned. The Commodity Supplemental Food Program (CFDA 10.565) received like-kind goods. The monetary value of these goods was $66,868 for the year ended August 31, 2022. This monetary value was reported on the schedule. The District participates in numerous state and federal grant programs governed by various rules and regulations of the grantor agencies. Expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowed or are limited as to reimbursement. Costs charged to the respective grant programs are subject to audit and adjustment by the grantor agencies; therefore, to the extent that the District has not complied with the rules and regulations governing the grants, if any, refunds of any money received may be required and the collectability of any related receivable at August 31, 2022, may be impaired. Negative amounts shown, if any, represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. In the opinion of the District, there are no significant contingent liabilities relating to compliance with the rules and regulations governing the respective grants; therefore, no provision has been recorded in the accompanying basic financial statements for such contingency.White Oak Independent School District has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.Reconciliation of Federal AwardsThe following reconciles federal expenditures per the Schedule of Expenditures of Federal Awards (SEFA) to the federal revenue reported on Exhibit C-2:Federal expenditures per SEFA$2,977,095SHARS227,280Federal revenue per Exhibit C-2$3,204,375 De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.