Title: PASS-THROUGH EXPENDITURES
Accounting Policies: The District utilizes the fund types specified in Texas Education Agency's Financial Accountability System Resource Guide. General Fund - is used to account for resources related to the United States Department of Defense ROTC program, the Child Nutrition programs, the E-rate program, Impact Aid, the Medicaid Administrative Claiming program, interest subsidy, Cares Relief Act and ESSER funding and indirect cost revenues of various federal grants. Special Revenue Funds are used to account for resources restricted or designated for specific purposes by a grantor. Federal and state financial assistance generally is accounted for in a Special Revenue Fund. Funds that are not expended are generally returned to the grantor at the close of specified grant periods. The accompanying Schedule of Expenditures of Federal Awards (SEFA), Exhibit K-1, includes the federal award activity of the District under programs of the federal government for the year ended June 30, 2022. The information is presented in accordance with the requirements of Title 2, U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). The 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. With this measurement focus, only current assets, deferred outflows of resources, current liabilities, deferred inflows of resources, and the fund balance are included on the balance sheet. Operating statements of these funds present increases and decreases in net current position. The modified accrual basis of accounting is used for the governmental fund types. This basis of accounting recognizes revenues in the accounting period in which they become susceptible to accrual, i.e., both measurable and available, and expenditures in the accounting period in which the fund liability is incurred, if measurable, except for unmatured interest on general long-term debt, which is recognized when due, and certain compensated absences and claims and judgments, which are recognized when the obligations are expected to be liquidated with expendable available financial resources. Federal grant funds are generally considered to be earned to the extent of expenditures made under the provisions of the grant, and, accordingly, when such funds are received in advance, they are recorded as unearned revenues until earned. The period of performance for Federal grant funds for the purpose of liquidation of outstanding obligations made on or before the ending date of the Federal project period is no later than 90 days after the Federal project period ending date as specified in the terms and conditions of the Federal award, unless an extension is authorized by the Federal awarding agency or pass-through entity, in accordance with the Uniform Guidance. Expenditures for the National School Lunch and Breakfast Program are not specifically attributable to the Federal revenue source and are shown on the schedule in an amount equal to Federal revenue. Included in the National School Lunch Program are USDA Donated Commodities which represent non-cash assistance. Expenditures are recognized for the issuance of the commodities to the District's campuses.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
None of the federal or state programs expended by the District were passed through to subrecipients.
Title: FEDERAL REVENUE RECONCILIATION
Accounting Policies: The District utilizes the fund types specified in Texas Education Agency's Financial Accountability System Resource Guide. General Fund - is used to account for resources related to the United States Department of Defense ROTC program, the Child Nutrition programs, the E-rate program, Impact Aid, the Medicaid Administrative Claiming program, interest subsidy, Cares Relief Act and ESSER funding and indirect cost revenues of various federal grants. Special Revenue Funds are used to account for resources restricted or designated for specific purposes by a grantor. Federal and state financial assistance generally is accounted for in a Special Revenue Fund. Funds that are not expended are generally returned to the grantor at the close of specified grant periods. The accompanying Schedule of Expenditures of Federal Awards (SEFA), Exhibit K-1, includes the federal award activity of the District under programs of the federal government for the year ended June 30, 2022. The information is presented in accordance with the requirements of Title 2, U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). The 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. With this measurement focus, only current assets, deferred outflows of resources, current liabilities, deferred inflows of resources, and the fund balance are included on the balance sheet. Operating statements of these funds present increases and decreases in net current position. The modified accrual basis of accounting is used for the governmental fund types. This basis of accounting recognizes revenues in the accounting period in which they become susceptible to accrual, i.e., both measurable and available, and expenditures in the accounting period in which the fund liability is incurred, if measurable, except for unmatured interest on general long-term debt, which is recognized when due, and certain compensated absences and claims and judgments, which are recognized when the obligations are expected to be liquidated with expendable available financial resources. Federal grant funds are generally considered to be earned to the extent of expenditures made under the provisions of the grant, and, accordingly, when such funds are received in advance, they are recorded as unearned revenues until earned. The period of performance for Federal grant funds for the purpose of liquidation of outstanding obligations made on or before the ending date of the Federal project period is no later than 90 days after the Federal project period ending date as specified in the terms and conditions of the Federal award, unless an extension is authorized by the Federal awarding agency or pass-through entity, in accordance with the Uniform Guidance. Expenditures for the National School Lunch and Breakfast Program are not specifically attributable to the Federal revenue source and are shown on the schedule in an amount equal to Federal revenue. Included in the National School Lunch Program are USDA Donated Commodities which represent non-cash assistance. Expenditures are recognized for the issuance of the commodities to the District's campuses.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The expenditures shown on the SEFA does not include School Health and Related Services (SHARS), ERate program, and Qualified Energy Conservation Bonds (QECB) interest subsidy, recorded in the General Fund, since the revenue for those programs are not considered federal financial assistance as defined by the Uniform Guidance. A reconciliation of the expenditures reported in the SEFA to reported federal revenues shown on Exhibit C-3 is as follows: Federal revenues per the Statement of Revenues, Expenditures and Changes in Fund Balance - Governmental Funds (Exhibit C-3) $43,046,322. Less items not subject to single audit: School health and related services revenue $2,343,326, E-Rate $46,059, QECN $154,100. Plus Emergency Operation Cost Reimbursement recognized as revenue in the prior year but reported on the current year SEFA $641,932. Federal expenditures per the Schedule of Expenditures of Federal Awards (Exhibit K-1) $41,144,769.