Notes to SEFA
Title: Relationship to Financial Statements
Accounting Policies: The accompanying schedule of expenditures of federal awards presents the federal grant activity of Richland School District Two. All federal awards received directly from federal agencies, as well as those passed through other governmental activities, are included in the schedule.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
Federal award expenditures are generally reported in the District's financial statements as expenditures in the Special Revenue Funds, with the exception of the expenditures for Impact Aid, which are reported in the General Fund.
Title: Basis of Accounting
Accounting Policies: The accompanying schedule of expenditures of federal awards presents the federal grant activity of Richland School District Two. All federal awards received directly from federal agencies, as well as those passed through other governmental activities, are included in the schedule.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The accompanying schedule of expenditures of federal awards is presented using the modified accrual basis of accounting, the same basis of accounting used to prepare the governmental financial statements as outlined in the notes to the financial statements.