Audit 337696

Title: Note 1-Basis of Presentation Accounting Policies: The accompanying schedule of expenditures of federal awards (SEFA) includes the federal grant activity of Lago Vista Independent School District and is presented on the modified accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of the Uniform Guidance. Therefore, some amounts presented in this schedule may differ from amounts presented in or used in the preparation of the basic financial statements De Minimis Rate Used: N Rate Explanation: The District has elected not to use the 10% deminimus indirect cost rate. The accompanying schedule of expenditures of federal awards (SEFA) includes the federal grant activity of Lago Vista Independent School District and is presented on the modified accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of the Uniform Guidance. Therefore, some amounts presented in this schedule may differ from amounts presented in or used in the preparation of the basic financial statements.

Title: Note 2-Federal Awards Reconciliation Accounting Policies: The accompanying schedule of expenditures of federal awards (SEFA) includes the federal grant activity of Lago Vista Independent School District and is presented on the modified accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of the Uniform Guidance. Therefore, some amounts presented in this schedule may differ from amounts presented in or used in the preparation of the basic financial statements De Minimis Rate Used: N Rate Explanation: The District has elected not to use the 10% deminimus indirect cost rate. SHARS funding of $45,739 plus total expenditures from schedule of federal awards of $1,332,517 equals total federal revenue per C-2 of $(1,378,256).

Title: Note 3-Indirect Costs Accounting Policies: The accompanying schedule of expenditures of federal awards (SEFA) includes the federal grant activity of Lago Vista Independent School District and is presented on the modified accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of the Uniform Guidance. Therefore, some amounts presented in this schedule may differ from amounts presented in or used in the preparation of the basic financial statements De Minimis Rate Used: N Rate Explanation: The District has elected not to use the 10% deminimus indirect cost rate. The District has elected not to use the 10% deminimus indirect cost rate.

Title: Note 4-Subrecipients Accounting Policies: The accompanying schedule of expenditures of federal awards (SEFA) includes the federal grant activity of Lago Vista Independent School District and is presented on the modified accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of the Uniform Guidance. Therefore, some amounts presented in this schedule may differ from amounts presented in or used in the preparation of the basic financial statements De Minimis Rate Used: N Rate Explanation: The District has elected not to use the 10% deminimus indirect cost rate. Of the federal expenditures presented in the SEFA, the District did not provide any federal awards to subrecipients.