Notes to SEFA
Title: Non Cash Financial Assistance
Accounting Policies: Basis of PresentationThe accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal grant activity of the District under programs of the federal government for the year ended June 30, 2022. The information in this Schedule is presented in accordance with the requirements of the Office of Management and Budget (OMB) 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 and changes in net position of the District. All federal programs considered active during the year ended June 30, 2022, are reflected on the Schedule. An active federal program is defined as a federal program for which there were receipts or disbursements of funds or accrued (deferred) grant revenue adjustments during the fiscal year or a federal program considered as not completed or closed out at the beginning of the fiscal year. The Schedule is prepared using the modified accrual basis of accounting. Grant revenues are recorded for financial reporting purposes when the District has met the qualifications for the respective grant.Accrued and Deferred ReimbursementsVarious reimbursement procedures are used for Federal awards received by the District. Consequently, timing differences between expenditures and program reimbursements can exist at the beginning and end of the year. Accrued balances at year-end represent an excess of reimbursable expenditures over receipts to date. Deferred balances at year-end represent an excess of cash receipts over reimbursable expenditures to date. Generally, accrued or deferred balances covered by differences in timing of cash receipts and expenditures will be reversed in the remaining grant period.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The District receives USDA Commodities for use in sponsoring the National School Lunch Program. Per USDA guidance (FPI-18-2), donated USDA Commodities should be grouped with the National School Lunch Program and used the same federal assistance listing number as the National School Lunch Program. The value of commodities received for the year ended June 30, 2022 was $199,800. Commodities are recorded as revenues and expenditures in the Food Service Fund.
Title: Scope of Audi Pursuant to OMB Uniform Grant Guidance
Accounting Policies: Basis of PresentationThe accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal grant activity of the District under programs of the federal government for the year ended June 30, 2022. The information in this Schedule is presented in accordance with the requirements of the Office of Management and Budget (OMB) 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 and changes in net position of the District. All federal programs considered active during the year ended June 30, 2022, are reflected on the Schedule. An active federal program is defined as a federal program for which there were receipts or disbursements of funds or accrued (deferred) grant revenue adjustments during the fiscal year or a federal program considered as not completed or closed out at the beginning of the fiscal year. The Schedule is prepared using the modified accrual basis of accounting. Grant revenues are recorded for financial reporting purposes when the District has met the qualifications for the respective grant.Accrued and Deferred ReimbursementsVarious reimbursement procedures are used for Federal awards received by the District. Consequently, timing differences between expenditures and program reimbursements can exist at the beginning and end of the year. Accrued balances at year-end represent an excess of reimbursable expenditures over receipts to date. Deferred balances at year-end represent an excess of cash receipts over reimbursable expenditures to date. Generally, accrued or deferred balances covered by differences in timing of cash receipts and expenditures will be reversed in the remaining grant period.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
All federal grant operations of the Espa?ola Public School District (the District) are included in the scope of the Office of Management and Budget (OMB) Uniform Grant Guidance audit (the Single Audit). The Single Audit was performed in accordance with the provisions of the OMB Circular Compliance supplement (Revised April 2022, the Compliance Supplement). Compliance testing of all requirements are described in the Compliance Supplement, which was performed for the grant programs noted below. These programs represent all federal award programs, and other grants with fiscal year 2022 cash and non-cash expenditures to ensure coverage of at least 40% (HIGH risk auditee) of federally granted funds. Actual coverage is approximately 53% of total cash and non-cash federal award program expenditures. Total cash expenditures were in the amount of $11,477,887 and non-cash expenditures were in the amount of $199,800.