Notes to SEFA
Title: Note 2 - Basis of Presentation
Accounting Policies: Note 1 - Basis of Accounting
The Department accounts for all awards under federal programs in the General Fund and certain Special Revenue Funds in
accordance with the Texas Education Agency’s Financial Accountability System Resource Guide. These programs are
accounted for using a current financial resources measurement focus. With this measurement focus, only current assets
and current liabilities generally are included on the balance sheet. Operating statements of these funds present increases
(i.e. revenues and other financing sources) and decreases (i.e. expenditures and other financing uses) in net current assets.
The modified accrual basis of accounting is used for these funds. 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 liability is incurred, if measurable, except for certain compensated absences and claims and
judgments, which are recognized when the obligations are expected to be liquidated with expendable available financial
resources. Expenditures are recognized following the cost principles contained in the Title 2 U.S. Code of Federal
Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal
Awards (Uniform Guidance), wherein certain types of expenditures are not allowable or are limited to reimbursement. The
Department has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance.
Pass-through entity identifying numbers are presented where available.
Federal 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 unearned revenues until earned. Generally unused
balances are returned to the grantor at the close of specified project periods.
De Minimis Rate Used: N
Rate Explanation: See note 1, paragraph 2, second to last sentence.
The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) includes the federal grant activity of the
Department under programs of the federal government for the year ended August 31, 2023. The information in this
schedule is presented in accordance with the requirements of the Uniform Guidance. Because the schedule presents only a
selected portion of the operations of the Department, it is not intended to and does not present the financial position,
changes in net position or cash flows of the Department.
Title: Note 3 - General Fund Expenditures
Accounting Policies: Note 1 - Basis of Accounting
The Department accounts for all awards under federal programs in the General Fund and certain Special Revenue Funds in
accordance with the Texas Education Agency’s Financial Accountability System Resource Guide. These programs are
accounted for using a current financial resources measurement focus. With this measurement focus, only current assets
and current liabilities generally are included on the balance sheet. Operating statements of these funds present increases
(i.e. revenues and other financing sources) and decreases (i.e. expenditures and other financing uses) in net current assets.
The modified accrual basis of accounting is used for these funds. 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 liability is incurred, if measurable, except for certain compensated absences and claims and
judgments, which are recognized when the obligations are expected to be liquidated with expendable available financial
resources. Expenditures are recognized following the cost principles contained in the Title 2 U.S. Code of Federal
Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal
Awards (Uniform Guidance), wherein certain types of expenditures are not allowable or are limited to reimbursement. The
Department has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance.
Pass-through entity identifying numbers are presented where available.
Federal 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 unearned revenues until earned. Generally unused
balances are returned to the grantor at the close of specified project periods.
De Minimis Rate Used: N
Rate Explanation: See note 1, paragraph 2, second to last sentence.
Federal awards reported in the general fund are summarized as follows: See notes to SEFA for table/chart.