Notes to SEFA
Title: Note 2 ‐ Basis of Presentation
Accounting Policies: Note 1 ‐ Basis of Accounting
The District accounts for all awards under federal programs in the General 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. The District has not elected to use the 10‐percent de
minimis indirect cost rate as allowed under the Uniform Guidance.
De Minimis Rate Used: N
Rate Explanation: See Note 1, last paragraph, last sentence.
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 Uniform Guidance. Because the schedule presents on 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 ‐ Basis of Accounting
The District accounts for all awards under federal programs in the General 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. The District has not elected to use the 10‐percent de
minimis indirect cost rate as allowed under the Uniform Guidance.
De Minimis Rate Used: N
Rate Explanation: See Note 1, last paragraph, last sentence.
The following is a reconciliation of the federal program revenues reported in the District’s Annual Financial Report and total
expenditures per the Schedule of Expenditures of Federal Awards: See Notes to SEFA for table/chart.