Notes to SEFA
Accounting Policies: *For all Federal programs, the District 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 generally is
accounted for in a Special Revenue Fund.
∗ 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 grant funds were accounted for in a Special Revenue Fund or, in some instances, in the General Fund
which are Governmental Fund type funds.
With this measurement focus, only current assets and current liabilities and the fund balance 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 General 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 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.
∗ The period performance for federal grant funds for the purpose of liquidation of outstanding obligations made
on or before the ending date of the federal project period, extended 90 days beyond the federal project period
ending date, in accordance with provisions in Section H, Period of Performance of Federal Funds, Part 3,
Uniform Guidance Compliance Supplement.
∗ CFDA numbers for commodity assistance are the CFDA numbers of the programs under which USDA
donated the commodities.
∗ The District has elected to not use the 10 percent de minimis indirect cost rate allowed under the Uniform
Guidance.
∗ Indirect cost reimbursement for federal programs for this fiscal year was received in the amount of $650,283.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.