Notes to SEFA
Accounting Policies: NOTE 1 - GENERALThe Schedule of Expenditures of Federal Awards and Schedule of Expenditures of State Awards present the activity of all applicable federal and state award programs of the District. The Districts reporting entity is defined in Note 1 to the financial statements. Federal and state awards, whether expended from direct awards or from awards passed through other recipients, are included on the Schedule of Expenditures of Federal Awards and the Schedule of Expenditures of State Awards.NOTE 2 - BASIS OF ACCOUNTINGThe Schedule of Expenditures of Federal Awards and the Schedule of Expenditures of State Awards are prepared on the modified accrual basis of accounting with the exception of reporting encumbrances as expenditures when allowed by grant provisions. The modified accrual basis of accounting is described in Note 1 to the financial statements. Federal and state grants are considered earned to the extent of expenditures and encumbrances made under provisions of the grant.Grants that reimburse on a fee for service basis only include expenses in an amount to balance to any accrued or unearned revenue at year-end. These grants are not dependent upon expenditures for reimbursement.NOTE 3 - RELATIONSHIP TO FINANCIAL STATEMENTSFederal and state financial award programs are reported in relation to the Districts financial statements in the General Fund.NOTE 4 INDIRECT COSTSThe District elected not to use the 10% de minimis indirect cost rate. Conversely, the District elected to use a cost allocation plan that is on file with DSHS. This plan provides a methodology for identifying, accumulating, and distributing all allowable costs that are allocated (instead of being directly charged) to benefiting cost objectives.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.