Notes to SEFA
Accounting Policies: NOTE 1 – BASIS OF PRESENTATION & SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal
award activity of Felicity-Franklin Local School District (the District) under programs of the
federal government for the year ended June 30, 2023 and is prepared in accordance with the cash
basis of accounting. The information on this Schedule is prepared 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 the District, it is not
intended to and does not present the financial position or changes in net position of the District.
Such expenditures are recognized following the cost principles contained in Uniform Guidance
wherein certain types of expenditures may or may not be allowable or may be limited as to
reimbursement.
NOTE 2 – INDIRECT COST RATE
CFR Section 200.414 of the Uniform Guidance allows a non-federal entity that has never received a
negotiated indirect cost rate to charge a de minimis rate of 10% of modified total direct costs to
indirect costs. The District has elected not to use the 10-percent de minimis indirect cost rate as
allowed under the Uniform Guidance.
NOTE 3 - CHILD NUTRITION CLUSTER
The District commingles cash receipts from the U.S. Department of Agriculture with similar State
grants. When reporting expenditures on this Schedule, the District assumes it expends federal
monies first.
NOTE 4 – FOOD DONATION PROGRAM
The District reports commodities consumed on the Schedule at the entitlement value. The District
allocated d ed
food commodities to the respective program that benefitted from the use of those donated food
commodities.
De Minimis Rate Used: N
Rate Explanation: N/A