Notes to SEFA
Accounting Policies: 1. BASIS OF PRESENTATION
The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal awards
expenditures of Teague Independent School District (the “District”) under programs of the federal government
for the year ended June 30, 2024. The information in the accompanying 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). 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, change in net position, or cash flows of the District.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Accounting - The expenditures reported on the Schedule are presented using the modified-accrual basis
of accounting, with the exception of the National School Lunch Program, School Breakfast Program and the
Food Distribution Program. Under the modified-accrual basis of accounting, revenues are recognized in the
accounting period in which they become measurable and available, and expenditures in the accounting period in
which the fund liability is incurred, if measurable. Such expenditures are recognized following the cost principles
contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited to
reimbursement.
Expenditures for the National School Lunch Program, School Breakfast Program and the Food Distribution
Program are shown on the Schedule in an amount equal to the related revenue, but are not specifically attributable
to this revenue source. Expenditures are reported in this manner due to the Child Nutrition Fund being a fund
that combines local, state, and federal revenues, and spends those resources together to support the overall
operations of the Child Nutrition Program.
The District has elected to use the approved indirect cost rate on its ESSER Grant funds as allowed under the
Uniform Guidance.
Relationship to Basic Financial Statements - Expenditures of federal awards are reported in the District’s basic
financial statements in the special revenue funds.
Relationship to Federal Financial Reports - Amounts reported in the accompanying Schedule agree with the
amounts reported in the related federal financial reports in all significant respects.
Valuation of Non-Cash Programs – The District values revenues and expenditures for the Food Distribution
Program based on the value of commodities received.
De Minimis Rate Used: Both
Rate Explanation: The District has elected to use the approved indirect cost rate on its ESSER Grant funds as allowed under the
Uniform Guidance.