Notes to SEFA
Title: Note A- Scope of Audit Pursuant to UG and SAA of 1984
Accounting Policies: A modified accrual basis of accounting is used.
De Minimis Rate Used: N
Rate Explanation: Used a rate approved by the State of Alabama Department of Education through Indirect Cost Proposal application process.
The Ozark City Board of Education (the "Board") is an agency of the State of Alabama. All significant
operations of the Board are included in the scope of the Single Audit Act of 1984 and amendment of
1996, and the Uniform Guidance.
Title: Note B-Fiscal Period Audited
Accounting Policies: A modified accrual basis of accounting is used.
De Minimis Rate Used: N
Rate Explanation: Used a rate approved by the State of Alabama Department of Education through Indirect Cost Proposal application process.
Single audit testing procedures were performed for program transactions occurring during the fiscal year ended September 30, 2023. Grant and appropriation terms are indicated in the Schedule of Expenditures Federal Awards.
Title: Note C-Summary of Significant Accounting Policies
Accounting Policies: A modified accrual basis of accounting is used.
De Minimis Rate Used: N
Rate Explanation: Used a rate approved by the State of Alabama Department of Education through Indirect Cost Proposal application process.
Basis of Presentation
The Schedule of Expenditures of Federal Awards has been prepared on the modified accrual basis of accounting. Federal grant revenues are recorded for financial reporting purposes when the Board has met the qualifications for the respective grants. Several programs are funded jointly by state or local appropriations and federal funds. Costs incurred in programs partially funded by federal grants are applied against grant funds to the extent of revenue available when they properly apply to the grant, except as described below.
Accrued and Deferred Reimbursement
Various reimbursement procedures are used for federal awards received by the Board. 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 expenditures over cash reimbursements
received to date. Deferred balances at year-end represent an excess of cash reimbursements received over expenditures to date. Generally, accrued or deferred balances caused by differences in the timing of cash reimbursements and expenditures will be reversed in the remaining grant period.
De Minimis Indirect Rate
The Ozark City Board of Education has not elected to use the 10% de minimis indirect rate as allowed in the Uniform Guidance.