Audit 30665

Accounting Policies: For all Federal programs, the District uses the fund types specified in Texas EducationAgencys Financial Accountability System Resource Guide. Special revenue funds are usedto account for resources restricted to, or designated for, specific purposes by a grantor.Federal and state financial assistance generally is accounted for in a Special Revenue Fund.2. The accounting and financial reporting treatment applied to a fund is determined by itsmeasurement focus. The Governmental Fund types are accounted for using a currentfinancial resources measurement focus.All Federal grant funds were accounted for in a Special Revenue Fund which is aGovernmental Fund type. With this measurement focus, only current assets and currentliabilities generally are included on the balance sheet. Operating statements of these fundspresent increases (i.e., revenues and other financing sources) and decreases (i.e.,expenditures and other financing uses) in net current assets. The modified-accrual basis ofaccounting is used for the governmental funds.This basis of accounting recognizes revenues in the accounting period in which they becomeboth measurable and available and expenditures in the accounting period in which the fundliability is incurred, except that principal and interest on general long-term debt are recognizedwhen due. Federal grant funds are considered to be earned to the extent of expendituresmade under the provisions of the grant, and, accordingly, when such funds are received, theyare recorded as deferred revenues until earned.3. The period of availability for federal grant funds for the purpose of liquidation of outstandingobligations made on or before the ending date of the federal project period is extended 30days beyond the federal project period ending date, in accordance with provisions in SectionH, Period of Availability of Federal Funds, Part 3, 0MB Uniform Guidance.4. Reconciliation of the Schedule of Expenditures of Federal Awards to Exhibit C-3 is asfollows:Amount reported on Schedule of Expenditures of Federal Awards$ 10,986,864175,670779,844Amount reported on Schedule of Expenditures of Federal AwardsGeneral Fund Other Federal RevenueSchool Health Related Services (SHARS)Total Federal Program Revenue Reported in Exhibit C-3 $ 11,942,378 De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.