Notes to SEFA
Title: Note 1
Accounting Policies: Expenditures reported on the Schedule of Expenditures of Federal Awards are reported on the modified
accrual or accrual basis of accounting based on the fund-type of the program. Such expenditures are
recognized following the cost principles contained in Uniform Guidance, wherein certain types of
expenditures are not allowable or are limited as to reimbursement. Therefore, some amounts presented
in this schedule may differ from amounts presented in or used in the preparation of the basic financial
statements. Revenue from federal awards is recognized when the District has done everything
necessary to establish its right to revenue. For governmental funds, revenue from federal awards is
recognized when it is both measurable and available. Expenditures of federal awards are recognized in
the accounting period when the liability is incurred.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimus cost rate.
The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of the
North Scott Community School District under programs of the federal government for the year ended
June 30, 2023. 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 operations of North Scott Community School District, it is not intended to and does
not present the financial position, changes in net position or cash flows of North Scott Community School
District.
Title: Note 2
Accounting Policies: Expenditures reported on the Schedule of Expenditures of Federal Awards are reported on the modified
accrual or accrual basis of accounting based on the fund-type of the program. Such expenditures are
recognized following the cost principles contained in Uniform Guidance, wherein certain types of
expenditures are not allowable or are limited as to reimbursement. Therefore, some amounts presented
in this schedule may differ from amounts presented in or used in the preparation of the basic financial
statements. Revenue from federal awards is recognized when the District has done everything
necessary to establish its right to revenue. For governmental funds, revenue from federal awards is
recognized when it is both measurable and available. Expenditures of federal awards are recognized in
the accounting period when the liability is incurred.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimus cost rate.
Expenditures reported on the Schedule of Expenditures of Federal Awards are reported on the modified
accrual or accrual basis of accounting based on the fund-type of the program. Such expenditures are
recognized following the cost principles contained in Uniform Guidance, wherein certain types of
expenditures are not allowable or are limited as to reimbursement. Therefore, some amounts presented
in this schedule may differ from amounts presented in or used in the preparation of the basic financial
statements. Revenue from federal awards is recognized when the District has done everything
necessary to establish its right to revenue. For governmental funds, revenue from federal awards is
recognized when it is both measurable and available. Expenditures of federal awards are recognized in
the accounting period when the liability is incurred.
Title: Note 3
Accounting Policies: Expenditures reported on the Schedule of Expenditures of Federal Awards are reported on the modified
accrual or accrual basis of accounting based on the fund-type of the program. Such expenditures are
recognized following the cost principles contained in Uniform Guidance, wherein certain types of
expenditures are not allowable or are limited as to reimbursement. Therefore, some amounts presented
in this schedule may differ from amounts presented in or used in the preparation of the basic financial
statements. Revenue from federal awards is recognized when the District has done everything
necessary to establish its right to revenue. For governmental funds, revenue from federal awards is
recognized when it is both measurable and available. Expenditures of federal awards are recognized in
the accounting period when the liability is incurred.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimus cost rate.
The District has elected not to use the 10-percent de minimus indirect cost rate allowed under the
Uniform Guidance.