Audit 24905

Accounting Policies: 1. GeneralThe accompanying schedule of expenditures of federal awards includes the federal grant activity of Livingston Independent School District and is presented on the modified accrual basis of accounting. The information in this schedule is presented on the modified accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of Uniform Guidance, Audits of States, Local Governments, and Non-Profit Organizations. Therefore, some amounts presented in this schedule may differ from amounts presented in the preparation of, the general purpose financial statements. Special revenue funds are used to account for resources restricted to, or designed for, specific purposes by a grantor. Generally, unused balances are returned to the grantor at the close of the specific project period.2. Basis of AccountingThe accounting and financial reporting treatment applied to Special Revenue funds is the current financial resource measurement focus. With this measurement focus, only current assets and current liabilities are generally included on the balance sheet. Operating statements of these funds present increases and decreases in fund balance. The modified accrual basis of accounting recognizes revenues in the accounting period in which they become measurable and available, and expenditures in the accounting period in which the liability is incurred, except for unmatured interest on long-term debt, which is recognized when matured, and certain compensated absences, pension liability, other post- employment benefits, and claims, which are recognized when the obligations are expected to be liquidated with expendable available resources. Grant funds are considered to be earned as soon as all eligibility requirements imposed by the provider are met and expenditures have been incurred, and, accordingly, when such funds are received in advance, they are recorded as deferred revenue until earned.3. Availability of FundsThe period of availability for federal grant funds for the purpose of liquidation of outstanding obligations made on or before the ending date of the project period extended 30 days beyond the project period ending date.4. Indirect CostThe District did not use an indirect cost.5. School Health and Related Services (SHARS)/E-RateThe District received $1,038,647 of SHARS and $187,500 in E-Rate revenues during the year. This revenue is recorded in the General fund. This revenue is not considered federal financial assistance for purposes of the Schedule of Expenditures of Federal Awards. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.