Audit 32275

Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards is presented using the cash basis of accounting.Basis of accounting refers to when revenues received and expenditures disbursed are recognized in the accounts and how they are reported on the financial statements. The District maintains its accounting records for all funds and account groups on the cash basis of accounting under guidelines prescribed by the Illinois State Board of Education. Accordingly, revenues are recognized and recorded in the accounts which cash is received. In the same manner, expenditures are recognized and recorded upon the disbursement of cash. Assets of a fund are only recorded when a right to receive cash exists which arises from a previous cash transaction. Liabilities of a fund, similarly, result from previous cash transactions.Cash basis financial statements omit recognition of receivables and payables and other accrued and deferred items that do not arise from previous cash transactions.All Federal Programs:Federal awards received are reflected in the Districts financial statements in the Education Fund, Debt Service Fund, and Municipal Retirement/Social Security Fund as revenue from federal sources. Federal expenditures are also recorded in this fund.Non-cash Awards:Havana Community Unit School District No. 126 received a non-cash federal award in the amount of $21,634 from U.S. Department of Agriculture Food Commodities Program, CFDA #10.555 and a non-cash federal award in the amount of $3,998 from the U.S. Department of Defense Fresh Fruits and Vegetables Program, CFDA #10.555 during the year ended June 30, 2022. De Minimis Rate Used: Y Rate Explanation: The auditee used the de minimis cost rate.