Notes to SEFA
Title: Reconciliation
Accounting Policies: For all Federal programs, the District uses the fund types specified in Texas Education Agency's Financial
Accountability System Resource Guide. Special revenue funds are used to account for resources
restricted, or designated for, specific purposes by a grantor. Federal and state financial assistance
generally is accounted for in a Special Revenue Fund.
The accounting and financial reporting treatment applied to a fund is determined by its measurement
focus. The Governmental Fund types are accounted for using a current financial measurement focus. All
Federal grant funds were accounted for in the General Fund or Special Revenue Fund, which are
Governmental Fund types. With this measurement focus, only current assets and current liabilities and
the fund balance are included on the balance sheet. Operating statements of these funds present increases
and decreases in net current assets.
The modified accrual basis of accounting is used for the Governmental Fund types and Fiduciary Funds.
This basis of accounting recognizes revenue 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 General 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 unearned revenue until
earned.
According to AAG-SLG Appendix D, Questions and Answers, most Medicaid arrangements between
states and providers (SHARS) are contracts for services and not Federal assistance; they should not
appear on the Schedule of Expenditures of Federal Awards.
The District has not elected to use the 10% de minimis indirect cost rate as allowed by Uniform
Guidance.
De Minimis Rate Used: N
Rate Explanation: The district uses a negotiated rate from the texas education agency
Reconciling sefa to financials