Audit 335456

Title: 1. BASIS FOR PRESENTATION Accounting Policies: In the governmental fund finanical statements, the modified accrual basis of accounting is applied. Under the modified accrual basis of accounting, revenues are recognized when "measurable and available". Measurable means knowing or being able to reasonably estimate the amount. Available means collectible within the current period or soon enough thereafter to pay current liabilities. For this purpose, the District considers property tax revenues to be "available" if they are collected by the District fiscal year-end. Grants are recognized as revenues when qualified expenditures are incrred and a contractual claim exists with the grantor agency. Expenditures (including capital outlay) are recorded when the related fund liability is incurred, except for general long-term debt principal and interest, claims and judgments, and accrued compensated absences, which are recorded as expenditures to the extent they have matured. De Minimis Rate Used: N Rate Explanation: The District has not elected to utilize the 10 percent de minimis indirect cost rate. The accompanying Schedule of Expenditures of Federal Awards (SEFA) includes federal grant activity of Fremont County School District #2. The information in the schedule is presented in accordance with requirements of Title 2 CFR Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards.

Title: 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: In the governmental fund finanical statements, the modified accrual basis of accounting is applied. Under the modified accrual basis of accounting, revenues are recognized when "measurable and available". Measurable means knowing or being able to reasonably estimate the amount. Available means collectible within the current period or soon enough thereafter to pay current liabilities. For this purpose, the District considers property tax revenues to be "available" if they are collected by the District fiscal year-end. Grants are recognized as revenues when qualified expenditures are incrred and a contractual claim exists with the grantor agency. Expenditures (including capital outlay) are recorded when the related fund liability is incurred, except for general long-term debt principal and interest, claims and judgments, and accrued compensated absences, which are recorded as expenditures to the extent they have matured. De Minimis Rate Used: N Rate Explanation: The District has not elected to utilize the 10 percent de minimis indirect cost rate. Federal program expenditures included in the SEFA are presented on the modified accrual basis of accounting as described in Note 1 to the District's basic financial statements. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The District has approved a indirect cost rate with the Wyoming Department of Education for 7.53 percent on restricted programs and 12.04 percent unrestrict programs. The District has not elected to utilize the 10 percent de minimis indirect cost rate. The District did not pass through any funds to subrecipients. There were no loans/loan guarantees. Items with an asterisk (*) are major programs. Non-monetary assistance is reported in the SEFA at fair market value of commidities received and disbursed.