Notes to SEFA
Accounting Policies: Expenditures included on the Schedule of Expenditures of Federal Awards (the Schedule) are presented on
the modified accrual basis of accounting, with the exception of the National School Lunch Program,
National School Breakfast Program and the Food Distribution Program (Non-Cash Assistance). Under the
modified accrual basis of accounting, revenue is recognized in the accounting period in which it becomes
available and measurable, and expenditures in the accounting period in which the fund liability is incurred,
if measurable. Expenditures in the National School Lunch Program, National School Breakfast Program
and the Food Distribution Program are not specifically attributable to this revenue source and are shown on
the accompanying Schedule in an amount equal to revenue for balancing purposes only. The District values
revenues and expenditures for the Food Distribution Program based on the value of commodities received.
Grant funds are considered to be earned to the extent of expenditures made under the provisions of the
grant. Accordingly, when such funds are received, they are recorded as due to other governments until
related and authorized expenditures have been made. If balanees have not been expended by the end of the
project period, grantors may require the District to refund all or part of the unused amount.
De Minimis Rate Used: N
Rate Explanation: O’Donnell Independent School District has not elected to use the 10 percent de minimis indirect cost rate
as allowed under the Uniform Guidance.