Audit 330238

Accounting Policies: 1. GENERAL The Schedule of Expenditures of Federal and State Awards (the Schedule) presents the activity of all applicable federal and state award programs of the Point Isabel Independent School District (the District). The District’s reporting entity is defined in Note I of the financial statements. Federal and state awards received directly from federal and state agencies, as well as federal and state awards passed through other government agencies, are included on the Schedule. In accordance with TEA instructions, federal funds for the School Health and Related Services (SHARS) have been excluded from the Schedule. Federal funds for Child Nutrition Cluster, SHARS, Medicaid Administrative Claims (MAC), Food Distribution, Fresh Fruit & Vegetable, and Commodity Storage Delivery Reimbursement are reported in the General Fund. All other federal and state programs are accounted for and reported in Special Revenue Funds. 2. BASIS OF ACCOUNTING AND PRESENTATION The Schedule is presented using the modified accrual basis of accounting. The District’s significant accounting policies, including the modified accrual basis of accounting, are presented in Note I of the basic financial statements. The Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) and Texas Grant Management Standards (TxGMS). Therefore, some of the amounts presented in the Schedule may differ from amounts presented in, or used in the preparation of, the financial statements. De Minimis Rate Used: N Rate Explanation: The District has received a negotiated indirect cost rate from TEA and may not elect to use a de minimis cost rate of 10% as described at 2 CFR §200.414(f)—Indirect (F&A) costs.