Notes to SEFA
Accounting Policies: 1. GeneralThe accompanying schedule of expenditures of federal awards includes the federal grant activity of New SummerfieldIndependent School District and is presented on the modified accrual basis of accounting. The information in thisschedule is presented on the modified accrual basis of accounting. The information in this schedule is presented inaccordance with the requirements of Uniform Guidance, Audits of States, Local Governments, and Non-ProfitOrganizations . Therefore, some amounts presented in this schedule may differ from amounts presented in thepreparation of, the general purpose financial statements. Special revenue funds are used to account for resourcesrestricted to, or designed for, specific purposes by a grantor. Generally, unused balances are returned to the grantor atthe close of the specific project period.2. Basis of AccountingThe accounting and financial reporting treatment applied to Special Revenue funds is the current financial resourcemeasurement focus. With this measurement focus, only current assets and current liabilities are generally included onthe balance sheet. Operating statements of these funds present increases and decreases in fund balance. The modifiedaccrual basis of accounting recognizes revenues in the accounting period in which they become measurable andavailable, and expenditures in the accounting period in which the liability is incurred, except for unmatured interest onlong-term debt, which is recognized when matured, and certain compensated absences, pension liability, other postemploymentbenefits, and claims, which are recognized when the obligations are expected to be liquidated withexpendable available resources. Grant funds are considered to be earned as soon as all eligibility requirements imposedby the provider are met and expenditures have been incurred, and, accordingly, when such funds are received inadvance, they are recorded as deferred revenue until earned.3. Availability of FundsThe period of availability for federal grant funds for the purpose of liquidation of outstanding obligations made on orbefore the ending date of the project period extended 30 days beyond the project period ending date.4. Indirect CostThe District does not use an indirect cost rate in federal programs.5. School Health and Related Services (SHARS)The District received $133,562 of SHARS revenue during the year. This revenue is recorded in the General fund. Thisrevenue is not considered federal financial assistance for purposes of the Schedule of Expenditures of Federal Awards.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.