Title: Basis of Presentation
Accounting Policies: The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. The governmental funds are accounted for using a current-financial-resources measurement focus. All federal and state grant funds are accounted for in the Special Revenue Fund, a component of the governmental funds. With this measurement focus, only current assets and current liabilities, 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 assets.
The modified-accrual basis of accounting is used for the governmental funds. This basis of accounting recognizes revenues in the accounting period in which they become both measurable and available and expenditures in the accounting period in which the fund liability is incurred, except that principal and interest on general long-term debt are recognized when due. Federal and state grant funds are considered to be earned when all eligibility requirements have been met. Any excess of revenues or expenditures is recorded as unearned revenues or accounts receivable, respectively. The period of availability for federal funds for the purpose of liquidating all financial obligations incurred on or before the ending date of the federal project period extended 120 calendar days beyond the federal project period ending date as specified in the terms and conditions (2 CFR section 200.344(b)).
De Minimis Rate Used: N
Rate Explanation: The District received the restricted and unrestricted indirect cost rates anually from the Texas Education Agency for one-year period from July 1 to June 30.
The Houston Independent School District (the “District”) utilizes the funds specified in the Texas Education Agency Financial Accountability System Resource Guide. The information in the Schedule of Expenditures of Federal Awards (SEFA) is presented in accordance with the requirements of the Uniform Guidance and the Schedule of Expenditures of State Awards (SESA) is presented in accordance with the requirements of Texas Uniform Grant Management Standards.
The Special Revenue Fund is used to account for resources restricted to, or designated for, specific purposes by a grantor. Federal and state financial assistance generally is accounted for in a Special Revenue Fund. Generally, unused balances are returned to the grantor at the close of specified project periods.
Title: Significant Accounting Policies
Accounting Policies: The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. The governmental funds are accounted for using a current-financial-resources measurement focus. All federal and state grant funds are accounted for in the Special Revenue Fund, a component of the governmental funds. With this measurement focus, only current assets and current liabilities, 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 assets.
The modified-accrual basis of accounting is used for the governmental funds. This basis of accounting recognizes revenues in the accounting period in which they become both measurable and available and expenditures in the accounting period in which the fund liability is incurred, except that principal and interest on general long-term debt are recognized when due. Federal and state grant funds are considered to be earned when all eligibility requirements have been met. Any excess of revenues or expenditures is recorded as unearned revenues or accounts receivable, respectively. The period of availability for federal funds for the purpose of liquidating all financial obligations incurred on or before the ending date of the federal project period extended 120 calendar days beyond the federal project period ending date as specified in the terms and conditions (2 CFR section 200.344(b)).
De Minimis Rate Used: N
Rate Explanation: The District received the restricted and unrestricted indirect cost rates anually from the Texas Education Agency for one-year period from July 1 to June 30.
The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. The governmental funds are accounted for using a current-financial-resources measurement focus. All federal and state grant funds are accounted for in the Special Revenue Fund, a component of the governmental funds. With this measurement focus, only current assets and current liabilities, 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 assets.
The modified-accrual basis of accounting is used for the governmental funds. This basis of accounting recognizes revenues in the accounting period in which they become both measurable and available and expenditures in the accounting period in which the fund liability is incurred, except that principal and interest on general long-term debt are recognized when due. Federal and state grant funds are considered to be earned when all eligibility requirements have been met. Any excess of revenues or expenditures is recorded as unearned revenues or accounts receivable, respectively. The period of availability for federal funds for the purpose of liquidating all financial obligations incurred on or before the ending date of the federal project period extended 120 calendar days beyond the federal project period ending date as specified in the terms and conditions (2 CFR section 200.344(b)).
Title: Non-Cash Assistance Food Commodities
Accounting Policies: The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. The governmental funds are accounted for using a current-financial-resources measurement focus. All federal and state grant funds are accounted for in the Special Revenue Fund, a component of the governmental funds. With this measurement focus, only current assets and current liabilities, 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 assets.
The modified-accrual basis of accounting is used for the governmental funds. This basis of accounting recognizes revenues in the accounting period in which they become both measurable and available and expenditures in the accounting period in which the fund liability is incurred, except that principal and interest on general long-term debt are recognized when due. Federal and state grant funds are considered to be earned when all eligibility requirements have been met. Any excess of revenues or expenditures is recorded as unearned revenues or accounts receivable, respectively. The period of availability for federal funds for the purpose of liquidating all financial obligations incurred on or before the ending date of the federal project period extended 120 calendar days beyond the federal project period ending date as specified in the terms and conditions (2 CFR section 200.344(b)).
De Minimis Rate Used: N
Rate Explanation: The District received the restricted and unrestricted indirect cost rates anually from the Texas Education Agency for one-year period from July 1 to June 30.
National School Lunch Program and Summer Food Service Program non-cash commodities are recorded at their estimated market value at the time of donation.
Title: Reconciliation
Accounting Policies: The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. The governmental funds are accounted for using a current-financial-resources measurement focus. All federal and state grant funds are accounted for in the Special Revenue Fund, a component of the governmental funds. With this measurement focus, only current assets and current liabilities, 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 assets.
The modified-accrual basis of accounting is used for the governmental funds. This basis of accounting recognizes revenues in the accounting period in which they become both measurable and available and expenditures in the accounting period in which the fund liability is incurred, except that principal and interest on general long-term debt are recognized when due. Federal and state grant funds are considered to be earned when all eligibility requirements have been met. Any excess of revenues or expenditures is recorded as unearned revenues or accounts receivable, respectively. The period of availability for federal funds for the purpose of liquidating all financial obligations incurred on or before the ending date of the federal project period extended 120 calendar days beyond the federal project period ending date as specified in the terms and conditions (2 CFR section 200.344(b)).
De Minimis Rate Used: N
Rate Explanation: The District received the restricted and unrestricted indirect cost rates anually from the Texas Education Agency for one-year period from July 1 to June 30.
The disbursement of funds received under federal grant programs generally requires compliance with terms and conditions specified in the grant agreements and is subject to audit by the grantor agencies. Any disallowed claims resulting from such audits could become a liability of the General Fund. In the opinion of management, such disallowed claims, if any, will not have a material effect on any of the financial statements of the individual fund types or on the overall financial position of the District at June 30, 2024. Total Expenditures of Federal Financial Assistance: $ 736,678,395
Public Assistance Grants (ALN 97.036) DR-4485 26,325,392
COVID-19 Emergency Connectivity Fund (ALN 32.009) 12,399,077
Additional federal revenue reported
Interest Subsidy on Build America & Qualified School Construction Bonds 4,432,143 School Health and Related Services (SHARS) 3,286,676
Total Federal Revenues Reported $ 783,121,683
Title: De Minimis Indirect Cost Rate
Accounting Policies: The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. The governmental funds are accounted for using a current-financial-resources measurement focus. All federal and state grant funds are accounted for in the Special Revenue Fund, a component of the governmental funds. With this measurement focus, only current assets and current liabilities, 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 assets.
The modified-accrual basis of accounting is used for the governmental funds. This basis of accounting recognizes revenues in the accounting period in which they become both measurable and available and expenditures in the accounting period in which the fund liability is incurred, except that principal and interest on general long-term debt are recognized when due. Federal and state grant funds are considered to be earned when all eligibility requirements have been met. Any excess of revenues or expenditures is recorded as unearned revenues or accounts receivable, respectively. The period of availability for federal funds for the purpose of liquidating all financial obligations incurred on or before the ending date of the federal project period extended 120 calendar days beyond the federal project period ending date as specified in the terms and conditions (2 CFR section 200.344(b)).
De Minimis Rate Used: N
Rate Explanation: The District received the restricted and unrestricted indirect cost rates anually from the Texas Education Agency for one-year period from July 1 to June 30.
The District has elected not to use the 10-percent de minimis indirect cost as allowed under the Uniform Guidance.
Title: Indirect Costs
Accounting Policies: The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. The governmental funds are accounted for using a current-financial-resources measurement focus. All federal and state grant funds are accounted for in the Special Revenue Fund, a component of the governmental funds. With this measurement focus, only current assets and current liabilities, 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 assets.
The modified-accrual basis of accounting is used for the governmental funds. This basis of accounting recognizes revenues in the accounting period in which they become both measurable and available and expenditures in the accounting period in which the fund liability is incurred, except that principal and interest on general long-term debt are recognized when due. Federal and state grant funds are considered to be earned when all eligibility requirements have been met. Any excess of revenues or expenditures is recorded as unearned revenues or accounts receivable, respectively. The period of availability for federal funds for the purpose of liquidating all financial obligations incurred on or before the ending date of the federal project period extended 120 calendar days beyond the federal project period ending date as specified in the terms and conditions (2 CFR section 200.344(b)).
De Minimis Rate Used: N
Rate Explanation: The District received the restricted and unrestricted indirect cost rates anually from the Texas Education Agency for one-year period from July 1 to June 30.
Indirect costs in the amount of $476,963 from the prior fiscal year are included in the Schedule of Expenditures of Federal Awards.