Audit 312303

Accounting Policies: Basis of PresentationThe accompanying schedule of expenditures of federal awards includes the federal grant activity of JudsonIndependent School District and is presented on the modified accrual basis of accounting. The information inthis schedule is presented in accordance with the requirements of the Uniform Guidance. Therefore, someamounts presented in this schedule may differ from amounts presented in, or used in the preparation of, thebasic financial statements.Note 1A total of $5,381,256 is included in the schedule of expenditures of federal awards and is recorded in thegeneral fund. See note 17 in the notes to the financial statements section.The District utilizes the fund types specified in the Texas Education Agency Resource Guide.Special revenue funds are used to account for resources restricted to, or designated for, specific purposes by agrantor. Federal and state financial assistance generally is accounted for in a special revenue fund. Generally,unused balances are returned to the grantor at the close of specified project periods.The accounting and financial reporting treatment applied to a fund is determined by its measurement focus.The governmental fund types and agency funds are accounted for using a current financial resourcesmeasurement focus. All federal grant funds were accounted for in the special revenue funds, a component of thegovernmental fund type. With this measurement focus, only current assets and current liabilities generally areincluded on the balance sheet. Operating statements of these funds present increases (i.e., revenues and otherfinancing sources) and decreases (i.e., expenditures and other financing uses) in fund balances.The modified accrual basis of accounting is used for the governmental fund types. This basis of accountingrecognizes revenues in the accounting period, in which they become susceptible to accrual, i.e., bothmeasurable and available, and expenditures in the accounting period in which the fund liability is incurred, ifmeasurable, except for unmatured interest on long-term debt, which is recognized when due, and certaincompensated absences and claims and judgments, which are recognized when the obligations are expected to beliquidated with expendable available financial resources.Federal grant funds are considered to be earned to the extent of expenditures made under the provisions of thegrant and, accordingly, when such funds are received, they are recorded as deferred revenues until earned.Non-Cash USDA Donated Commodities received like-kind goods and no grant revenue received was reportedon the schedule for the monetary value of these goods. The monetary value of these goods was $1,212,143 forthe year ended June 30, 2022.The District participates in numerous state and federal grant programs that are governed by various rules andregulations of the grantor agencies. Costs charged to the respective grant programs are subject to audit andadjustment by the grantor agencies; therefore, to the extent that the District has not complied with the rules andregulations governing the grants, if any, refunds or any money received may be required and the collectabilityof any related receivable at June 30, 2022, may be impaired. In the opinion of the District, there are nosignificant contingent liabilities relating to compliance with the rules and regulations governing the respectivegrants; therefore, no provisions have been recorded in the accompanying combined financial statements forsuch contingencies.The United States Department of Education has given the Texas Education Agency (TEA) authority to issueindirect cost rates for Texas School Districts and Charter Schools. To recover any indirect costs, the Districtmust request and receive new indirect cost rates for every school year allowed by the Uniform Guidance Part200.57. The District has not elected to use the 10% deminimis indirect cost rate. There were no awards passed through to subreci De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.