Notes to SEFA
Title: Note 1 - Relationship to the District's Financial Statements
Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards presents the activity of all federal award programs of Beardstown Community Unit School District No. 15. Federal awards passed through other government agencies are included on the schedule. Such amounts received as pass-through awards are specifically identified on the Schedule of Expenditures of Federal Awards. The accompanying Schedule of Expenditures of Federal Awards is presented using the cash basis of accounting.
Basis of accounting refers to when revenues received and expenditures disbursed are recognized in the accounts and how they are reported on the financial statements. The District maintains its accounting records for all funds and account groups on the cash basis of accounting under guidelines prescribed by the Illinois State Board of Education. Accordingly, revenues are recognized and recorded in the accounts which cash is received. In the same manner, expenditures are recognized and recorded upon the disbursement of cash. Assets of a fund are only recorded when a right to receive cash exists which arises from a previous cash transaction. Liabilities of a fund, similarly, result from previous cash transactions.
Cash basis financial statements omit recognition of receivables and payables and other accrued and deferred items that do not arise from previous cash transactions.
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate.
Relationship to the District’s Financial Statements
All Federal Programs:
Federal awards received are reflected in the District’s financial statements in the Education Fund as revenue from federal sources. Federal expenditures are also recorded in this fund.
Non-cash Awards:
Beardstown Community Unit School District No. 15 received a non-cash federal award in the amount of $79,296 from U.S. Department of Agriculture Food Commodities Program, CFDA #10.555 and a non-cash federal award in the amount of $18,977 from the U.S. Department of Defense Fresh Fruits and Vegetables Program, CFDA #10.555 during the year ended June 30, 2024.
Title: Note 3 - Contingencies
Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards presents the activity of all federal award programs of Beardstown Community Unit School District No. 15. Federal awards passed through other government agencies are included on the schedule. Such amounts received as pass-through awards are specifically identified on the Schedule of Expenditures of Federal Awards. The accompanying Schedule of Expenditures of Federal Awards is presented using the cash basis of accounting.
Basis of accounting refers to when revenues received and expenditures disbursed are recognized in the accounts and how they are reported on the financial statements. The District maintains its accounting records for all funds and account groups on the cash basis of accounting under guidelines prescribed by the Illinois State Board of Education. Accordingly, revenues are recognized and recorded in the accounts which cash is received. In the same manner, expenditures are recognized and recorded upon the disbursement of cash. Assets of a fund are only recorded when a right to receive cash exists which arises from a previous cash transaction. Liabilities of a fund, similarly, result from previous cash transactions.
Cash basis financial statements omit recognition of receivables and payables and other accrued and deferred items that do not arise from previous cash transactions.
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate.
The District receives awards under various federal grant programs which must be expended according to provisions established by the various grants. Compliance with the grant provisions are subject to audit by the various granting agencies which may impose sanctions in the event of non-compliance. Management believes they have complied with all aspects of the grant provisions and they feel the results of any adjustments would have an immaterial impact on the financial statements taken as a whole.
Title: Note 4 - Insurance, Loans and Loan Guarantees
Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards presents the activity of all federal award programs of Beardstown Community Unit School District No. 15. Federal awards passed through other government agencies are included on the schedule. Such amounts received as pass-through awards are specifically identified on the Schedule of Expenditures of Federal Awards. The accompanying Schedule of Expenditures of Federal Awards is presented using the cash basis of accounting.
Basis of accounting refers to when revenues received and expenditures disbursed are recognized in the accounts and how they are reported on the financial statements. The District maintains its accounting records for all funds and account groups on the cash basis of accounting under guidelines prescribed by the Illinois State Board of Education. Accordingly, revenues are recognized and recorded in the accounts which cash is received. In the same manner, expenditures are recognized and recorded upon the disbursement of cash. Assets of a fund are only recorded when a right to receive cash exists which arises from a previous cash transaction. Liabilities of a fund, similarly, result from previous cash transactions.
Cash basis financial statements omit recognition of receivables and payables and other accrued and deferred items that do not arise from previous cash transactions.
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate.
As of June 30, 2024, there was no federal insurance in effect and no loans or loan guarantees outstanding.