Notes to SEFA
Accounting Policies: NOTE A – BASIS OF PRESENTATION
The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the
federal award activity of Southern Local School District (the District) under programs of the
federal government for the year ended June 30, 2023. 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, changes
in net position, or cash flows of the District.
NOTE B – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Expenditures reported on the Schedule are reported on the cash basis of accounting. 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 C – INDIRECT COST RATE
The District has elected not to use the 10-percent de minimis indirect cost rate as allowed under
the Uniform Guidance.
NOTE D - 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 E – FOOD DONATION PROGRAM
The District reports commodities consumed on the Schedule at the fair value. The District
allocated donated food commodities to the respective program that benefitted from the use of
those donated food commodities.
NOTE F - TRANSFERS BETWEEN PROGRAM YEARS
Federal regulations require schools to obligate certain federal awards by June 30. However, with
ODE’s consent, schools can transfer unobligated amounts to the subsequent fiscal year’s
program. The District transferred the following amounts from 2023 to 2024 programs:
Program Title AL Number Amt. Transferred
Title I Grants to Local Educational Agencies 84.010 $ 628
Special Education - Grants to States 84.027 $ 86
Student Support and Academic Enrichment Program 84.424 $ 2,341
Education Stabilization Fund - American Rescue Plan 84.425U $ 967,574
De Minimis Rate Used: N
Rate Explanation: NA