Notes to SEFA
Title: USDA DONATED COMMODITIES
Accounting Policies: BASIS OF PRESENTATION-The accompanying schedule of expenditures of federal and state awards (the Schedule) includes the federal and certain related state grant activity of the Montgomery Area School District (the District). The information in this Schedule 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). Because the Schedule presents only a selected portion of the Districts operations, it is not intended to and does not present the Districts financial position, changes in net assets/fund balance, or cash flows. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES-Expenditures reported on the Schedule are reported on the 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. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to the amounts of expenditures reported and deferred amounts.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
Deferred balances at the beginning and end of the fiscal year represent inventories of USDA donated commodities. Such commodity inventories are valued at USDA provided unit values.
Title: SUBRECIPIENT STATUS
Accounting Policies: BASIS OF PRESENTATION-The accompanying schedule of expenditures of federal and state awards (the Schedule) includes the federal and certain related state grant activity of the Montgomery Area School District (the District). The information in this Schedule 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). Because the Schedule presents only a selected portion of the Districts operations, it is not intended to and does not present the Districts financial position, changes in net assets/fund balance, or cash flows. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES-Expenditures reported on the Schedule are reported on the 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. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to the amounts of expenditures reported and deferred amounts.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The District is a subrecipient of federal awards, does not function as a pass-through to other subrecipients, and $0 of the Districts grant awards have been passed-through.