Title: Note 1. Fund Types
Accounting Policies: Note 2. Accounting and Financial Reporting
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 grant funds were
accounted for in the Special Revenue Fund, which are 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 Schedule of Expenditures of Federal Awards was prepared on the modified accrual basis of accounting. 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 susceptible to accrual, i.e., both measurable and available, and expenditures in the
accounting period in which the fund liability is incurred, if measurable, except for unmatured interest on long-term debt,
which is recognized when due, and 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 deferred revenues until earned. The District has not elected
to use the 10 percent de-minimis indirect cost rate.
De Minimis Rate Used: N
Rate Explanation: See note 2, last paragraph, last sentence.
The District utilizes the fund types specified in the Texas Education Agency Resource Guide.
Special Revenue Fund – used to account for resources restricted to, or designated for, specific purposes by a grantor. Federal
and state awards generally are accounted for in a Special Revenue Fund. Generally, unused balances are returned to the
grantor at the close of specified grant periods.
Title: Note 3. Period of Availability
Accounting Policies: Note 2. Accounting and Financial Reporting
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 grant funds were
accounted for in the Special Revenue Fund, which are 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 Schedule of Expenditures of Federal Awards was prepared on the modified accrual basis of accounting. 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 susceptible to accrual, i.e., both measurable and available, and expenditures in the
accounting period in which the fund liability is incurred, if measurable, except for unmatured interest on long-term debt,
which is recognized when due, and 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 deferred revenues until earned. The District has not elected
to use the 10 percent de-minimis indirect cost rate.
De Minimis Rate Used: N
Rate Explanation: See note 2, last paragraph, last sentence.
The period of availability for federal grant funds for the purpose of liquidation of outstanding obligations made on or before the ending date of the federal project period extends 30 days beyond the federal project period ending date, in accordance with provisions in Section H: Period of Availability of Federal Funds, Part 3, OMB Compliance Supplement.
Title: Note 4. Contingent Liabilities
Accounting Policies: Note 2. Accounting and Financial Reporting
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 grant funds were
accounted for in the Special Revenue Fund, which are 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 Schedule of Expenditures of Federal Awards was prepared on the modified accrual basis of accounting. 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 susceptible to accrual, i.e., both measurable and available, and expenditures in the
accounting period in which the fund liability is incurred, if measurable, except for unmatured interest on long-term debt,
which is recognized when due, and 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 deferred revenues until earned. The District has not elected
to use the 10 percent de-minimis indirect cost rate.
De Minimis Rate Used: N
Rate Explanation: See note 2, last paragraph, last sentence.
The District participates in numerous state and federal grant programs, which are governed by various rules and regulations
of the grantor agencies. Costs charged to the respective grant programs are subject to audit and adjustments by the grantor
agencies; therefore, to the extent that the District has not complied with rules and regulations governing the grants, refund of any money received may be required and the collectability of any related receivable at June 30, 2024, may be impaired. In the opinion of the District, there are no significant contingent liabilities relating to compliance with the rules and regulations governing the respective grants; therefore, no provision has been recorded in the accompanying financial statements for such contingencies.
Title: Note 5. Reconciliation to the Basic Financial Statements
Accounting Policies: Note 2. Accounting and Financial Reporting
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 grant funds were
accounted for in the Special Revenue Fund, which are 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 Schedule of Expenditures of Federal Awards was prepared on the modified accrual basis of accounting. 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 susceptible to accrual, i.e., both measurable and available, and expenditures in the
accounting period in which the fund liability is incurred, if measurable, except for unmatured interest on long-term debt,
which is recognized when due, and 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 deferred revenues until earned. The District has not elected
to use the 10 percent de-minimis indirect cost rate.
De Minimis Rate Used: N
Rate Explanation: See note 2, last paragraph, last sentence.
The following is a reconciliation of expenditures of federal awards program per the Schedule of Expenditures of Federal
Awards and federal revenues reported on Exhibit C-2 of the District’s Annual Comprehensive Financial Report:
See notes to SEFA for table/chart.