Title: Note 2 ‐ Basis of Presentation
Accounting Policies: Note 1 ‐ Summary of Significant Accounting Policies
The District accounts for all awards under federal programs in the General and 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 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 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. Negative amounts shown on the Schedule of Expenditure
of Federal Awards represent adjustments or credits made in the normal course of business to amounts reported as
expenditures in prior years.
All federal grants are subject to review by the grantor agencies. Any expenditures identified by the grantor agencies as
disallowed could require reimbursement to the grantor agency from the District’s general fund.
De Minimis Rate Used: N
Rate Explanation: Note 5 ‐ Indirect Cost Rate
The District has not elected to use the 10% de minimis indirect cost rate under the Uniform Guidance.
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 the Office of Management and Budget (OMB) 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 ‐ Summary of Significant Accounting Policies
The District accounts for all awards under federal programs in the General and 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 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 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. Negative amounts shown on the Schedule of Expenditure
of Federal Awards represent adjustments or credits made in the normal course of business to amounts reported as
expenditures in prior years.
All federal grants are subject to review by the grantor agencies. Any expenditures identified by the grantor agencies as
disallowed could require reimbursement to the grantor agency from the District’s general fund.
De Minimis Rate Used: N
Rate Explanation: Note 5 ‐ Indirect Cost Rate
The District has not elected to use the 10% de minimis indirect cost rate under the Uniform Guidance.
The following table reconciles expenditures per the Schedule of Expenditures of Federal Awards to the federal program
revenues per the Statement of Revenues, Expenditures, and Changes in Fund Balance – Governmental Funds.
See notes to SEFA for table/chart.
Title: Note 4 ‐ General Fund Expenditures
Accounting Policies: Note 1 ‐ Summary of Significant Accounting Policies
The District accounts for all awards under federal programs in the General and 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 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 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. Negative amounts shown on the Schedule of Expenditure
of Federal Awards represent adjustments or credits made in the normal course of business to amounts reported as
expenditures in prior years.
All federal grants are subject to review by the grantor agencies. Any expenditures identified by the grantor agencies as
disallowed could require reimbursement to the grantor agency from the District’s general fund.
De Minimis Rate Used: N
Rate Explanation: Note 5 ‐ Indirect Cost Rate
The District has not elected to use the 10% de minimis indirect cost rate under the Uniform Guidance.
Federal awards reported in the General Fund are summarized as follows:
See notes to SEFA for table/chart.