Notes to SEFA
Title: Basis of Presentation
Accounting Policies: Because the schedule of expenditures of federal and state awards presents only a selected portion of the activities of the Center, it is not intended to, and does not, present the financial position, or changes in netposition, of the Center. For all federal and state awards, the Center uses the fund types specified in Texas Education Agency's Financial Accountability System Resource Guide. Special revenue funds are used to account for resources restricted to, or designated for, specific purposes by a grantor. Federal and state financial assistance is
generally accounted for in the special revenue funds. The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. The governmental fund types are accounted for using a current financial resources measurement focus. All
federal and state grant funds were accounted for in special revenue funds, which are governmental fund types. With this measurement focus, only current assets, current liabilities and fund balances are included on the balance sheet. Operating statements of these funds present increases and decreases in net current assets. The modified accrual basis of accounting is used for the governmental fund types. This basis of accounting recognizes revenues in the accounting period in which they become susceptible to accrual (i.e., both measurable and available) and expenditures in the accounting period in which the fund liability is incurred, if measurable, except for unmatured interest on long-term debt, which is recognized when due, and certain compensated absences and claims and judgments, which are recognized when the obligations are expected to be liquidated with expendable available financial resources. Federal and state grant funds are considered to be earned to the extent of expenditures made under the provisions of the grant, and, accordingly, when such funds are received, they are recorded as deferred revenues until earned.
De Minimis Rate Used: N
Rate Explanation: The auditee used the indirect cost rate methodolgy as approved by the Texas Education Agency.
See the Notes to the SEFA for chart/table instead.