Notes to SEFA
Accounting Policies: 1. GeneralThe accompanying schedule of expenditures of federal awards includes the federal grant activity of HendersonIndependent School District and is presented on the modified accrual basis of accounting. The information in thisschedule is presented in accordance with the requirements of Uniform Guidance. Therefore, some amounts presentedin this schedule may differ from amounts presented in, or used in the preparation of the basic financial statements.Special Revenue Funds are used to account for resources restricted to, or designed for, specific purposes by a grantor.Generally, unused balances are returned to the grantor at the close of specified project periods.2. Basis of AccountingThe accounting and financial reporting treatment applied to Special Revenue Funds is the current financial resourcesmeasurement focus. With this measurement focus, only current assets and current liabilities generally are includedon the balance sheet. Operating statements of these funds present increases and decreases in fund balances. Themodified accrual basis of accounting recognizes revenues in the accounting period in which they become measurableand available, and expenditures in the accounting period in which the fund liability is incurred, except for unmaturedinterest on general long-term debt, which is recognized when matured and certain compensated absences, pensionliabilities, other postemployment benefits, and claims and judgments, which are recognized when the obligations areexpected to be liquidated with expendable available financing resources. Federal grant funds are considered to beearned as soon as all eligibility requirements imposed by the provider are met and expenditures have been incurred,and, accordingly, when such funds are received in advance, they are recorded as deferred revenues until earned.3. Availability of FundsThe period of availability for federal grant funds for the purpose of liquidation of outstanding obligations made on orbefore the ending date of the federal project period extended 30 days beyond the federal project period ending date.4. Indirect CostThe District used $637,164 of indirect cost in the federal programs.5. School Health and Related Services (SHARS)The District received $675,632 of SHARS revenue and Qualified School Construction Bonds interest subsidy of$306,004 during the year. This revenue is recorded in the General Fund and the Debt Service Fund. The revenue isnot considered federal financial assistance for purposes of the Schedule of Expenditures of Federal Awards.
De Minimis Rate Used: Both
Rate Explanation: The District used $637,164 of indirect cost in the federal programs.