Notes to SEFA
Accounting Policies: For all Federal programs, the District uses the fund types specified in Texas Education Agency's FinancialAccountability System Resource Guide. Special revenue funds are used to account for resources restricted to,or designated for, specific purposes by a grantor. Federal and state financial assistance generally is accountedfor in a Special Revenue Fund.? The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. Allfederal grant funds were accounted for in a Special Revenue Funds, a component of the Governmental Fundtypes. Medicaid reimbursements (School Health and Related Services (SHARS) program for special educationstudents) are recorded in the General Fund as federal revenue but do not meet the definition of federal awardsfor purposes of preparing the schedule of federal awards.With this measurement focus, only current assets and current liabilities and the fund balance are included on thebalance sheet. Operating statements of these fund present increases and decreases in net current assets. Themodified accrual basis of accounting is used for the Governmental Fund types. This basis of accountingrecognizes revenues in the accounting period in which they become susceptible to accrual, i.e., both measurableand available, and expenditures in the accounting period in which they fund liability is incurred, if measurable,except for unmatured interest on General Long-Term Debt, which is recognized when due, and certaincompensated absences and claims and judgments, which are recognized when the obligations are expected to beliquidated with expendable available financial resources.Federal grants are considered to be earned to the extent of expenditures made under the provisions of the grantand, accordingly, when such funds are received, they are recorded as unearned revenue until earned.The District has not elected to use the 10% de minimis indirect cost rate as allowed under the UniformGuidance.? The period of availability for federal grant funds for the purpose of liquidation of outstanding obligations madeon or before the ending date of the federal project period extended 30 days beyond the federal project periodending date, in accordance with provisions in Compliance Supplement, Part 3, Section H, Period of Availabilityof Federal Funds.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.