Notes to SEFA
Accounting Policies: Note A Basis of PresentationThe accompanying schedule of expenditures of federal awards includes the federal grant activity of the Lanett City Board of Education (the Board), and is presented on the modified accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of the Uniform Guidance. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the financial statements. Because the schedule presents only a selected portion of the operations of the Board, it is not intended to and does not present the financial position or changes in net position of the Board. Several programs are funded jointly by State or local appropriations and Federal funds. Note B - Summary of Significant Accounting Policies:Expenditures reported in the schedule of expenditures of federal awards are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Federal awards expended include the amount of new Federal loans made or received during the year, plus the beginning of the year balance of loans from previous years for which there are remaining compliance requirements, plus any interest subsidy, cash, or administrative cost allowance received. The Board has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.