Notes to SEFA
Title: Relationship to Basic Financial Statements
Accounting Policies: GeneralThe accompanying schedule of expenditures of federal awards (SEFA) presents the activity of allfederal financial assistance programs of Kake City School District (School District). Theinformation in the SEFA is presented in accordance with the requirements of Title 2 U.S. Code ofFederal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and AuditRequirements for Federal Awards (Uniform Guidance). Federal financial assistance receiveddirectly from federal agencies, as well as federal financial assistance passed through otherentities, included on the SEFA. The School Districts reporting entity is defined in Note 1 to thefinancial statements.Basis of AccountingExpenditures reported on the accompanying SEFA are presented using the modified-accrualbasis of accounting, which is described in Note 1 of the School Districts basic financialstatements. Such expenditures are recognized following the cost principles contained in theUniform Guidance and OMB Circulars, as applicable, wherein certain types of expenditures arenot allowable or are limited as to reimbursement. The School District has elected not to use the10-percent de minimis indirect cost rate as allowed under the Uniform Guidance.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The following is a reconciliation of federal revenues reported in the School District's basicfinancial statements to federal expenditures reported in the SEFA.Federal revenues as reported in the basic financial statements $ 1,456,829Add: Impact Aid reserved in prior year recognized as expended infiscal year 2022 on the SEFA 557,120Federal revenue reflected as other local revenue in thefinancial statements 5,880Less: Contract revenue reflected as federal revenue in thefinancial statements (28,207)Impact Aid assigned for subsequent year expenditures recognizedas revenue in the financial statements (574,767)Expenditures recognized in prior year SEFA and recognized asfederal revenue in current year financial statements (1,095)Federal share of expenditures as reported on the SEFA $ 1,415,760