Notes to SEFA
Title: Note 3 - Reconciliation to Basic Financial Statements
Accounting Policies: Note 1 - Basis of Presentation
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 fiscal year ended June 30, 2024. The information in this schedule
is presented in accordance with Title 2 U.S. Code of Federal Regulations (CFR) 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, changes in
net position or cash flows of the District.
The District accounts for all awards under federal programs in the General Fund and certain 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. 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. Pass-through entity identifying numbers are
presented where available.
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. National School Lunch Program non-cash commodities
are recorded at their estimated market value at the time of donation.
De Minimis Rate Used: N
Rate Explanation: Note 2 - De Minimis Cost Rate
The District has elected not to use the 10% de minimis indirect cost rate as allowed under Uniform Guidance.
The following is a reconciliation of expenditures of federal awards program per Exhibit K-1 and Federal revenues reported on
Exhibit C-2: See notes to SEFA for table/chart.
Title: Note 4 - General Fund Expenditures
Accounting Policies: Note 1 - Basis of Presentation
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 fiscal year ended June 30, 2024. The information in this schedule
is presented in accordance with Title 2 U.S. Code of Federal Regulations (CFR) 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, changes in
net position or cash flows of the District.
The District accounts for all awards under federal programs in the General Fund and certain 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. 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. Pass-through entity identifying numbers are
presented where available.
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. National School Lunch Program non-cash commodities
are recorded at their estimated market value at the time of donation.
De Minimis Rate Used: N
Rate Explanation: Note 2 - De Minimis Cost Rate
The District has elected not to use the 10% de minimis indirect cost rate as allowed under Uniform Guidance.
Federal Awards reported in the general fund are submitted as follows: See Notes to SEFA for table/chart.