Title: NOTE 2 - BASIS OF PRESENTATION
Accounting Policies: NOTE 1 - BASIS OF ACCOUNTING
The District accounts for all awards under federal programs in the General and certain special revenue funds in
accordance with the Texas Education Agency’s Financial Accountability System Resource Guide. These programs are
accounted for using a current financial resources measurement focus. With this measurement focus, only current
assets and deferred outflows of resources, and current liabilities and deferred inflows of resources generally are
included on the balance sheet. Operating statements of these funds present increases (i.e., revenues and other
financing sources) and decreases (i.e., expenditures and other financing uses) in net current position.
The modified accrual basis of accounting is used for these funds. This basis of accounting recognizes revenues in the
accounting period in which they become susceptible to accrual, i.e. both measurable and available, and expenditures
in the accounting period in which the liability is incurred, if measurable, except for certain compensated absences and
claims and judgments, which are recognized when the obligations are expected to be liquidated with expendable
available financial resources.
Federal grant funds are considered to be earned to the extent of expenditures made under the provisions of the grant,
and, accordingly, when such funds are received, they are recorded as unearned revenues until earned. Generally
unused balances are returned to the grantor at the close of specified project periods.
Commodity Supplement (ALN 10.555) received like kind goods and no grant revenue received was reported on the
schedule for the monetary value of these goods. The monetary value of goods received was $676,273, while the
monetary value of goods used and recognized as income and expenditures was $676,273.
The District has not elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform
Guidance.
De Minimis Rate Used: N
Rate Explanation: See Note 1, last paragraph.
The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal grant activity of
the District under programs of the federal government for the year ended June 30, 2024. The information in this
schedule is presented in accordance with the requirements of Title 2. U.S. Code of Federal Regulations Part 200,
Uniform Administrative Requirements, Cost Principals, and Audit Requirements for Federal Awards (Uniform
Guidance). Because the schedule presents only a selected portion of the operations of the District, it is not intended
to and does not present the financial position, changes in net position or cash flows of the District.
Title: NOTE 3 - RECONCILIATION TO BASIC FINANCIAL STATEMENTS
Accounting Policies: NOTE 1 - BASIS OF ACCOUNTING
The District accounts for all awards under federal programs in the General and certain special revenue funds in
accordance with the Texas Education Agency’s Financial Accountability System Resource Guide. These programs are
accounted for using a current financial resources measurement focus. With this measurement focus, only current
assets and deferred outflows of resources, and current liabilities and deferred inflows of resources generally are
included on the balance sheet. Operating statements of these funds present increases (i.e., revenues and other
financing sources) and decreases (i.e., expenditures and other financing uses) in net current position.
The modified accrual basis of accounting is used for these funds. This basis of accounting recognizes revenues in the
accounting period in which they become susceptible to accrual, i.e. both measurable and available, and expenditures
in the accounting period in which the liability is incurred, if measurable, except for certain compensated absences and
claims and judgments, which are recognized when the obligations are expected to be liquidated with expendable
available financial resources.
Federal grant funds are considered to be earned to the extent of expenditures made under the provisions of the grant,
and, accordingly, when such funds are received, they are recorded as unearned revenues until earned. Generally
unused balances are returned to the grantor at the close of specified project periods.
Commodity Supplement (ALN 10.555) received like kind goods and no grant revenue received was reported on the
schedule for the monetary value of these goods. The monetary value of goods received was $676,273, while the
monetary value of goods used and recognized as income and expenditures was $676,273.
The District has not elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform
Guidance.
De Minimis Rate Used: N
Rate Explanation: See Note 1, last paragraph.
The following is a reconciliation of expenditures of federal awards program per Exhibit K-1 and expenditures reported on Exhibit C-3: See Notes to SEFA for table/chart.