Notes to SEFA
Accounting Policies: Expenditures included on the Schedule of Expenditures of Federal Awards (the Schedule) are presented on the modified accrual basis of accounting, with the exception of the National School Lunch Program, National School Breakfast Program and the Food Distribution Program (Non-Cash Assistance). Under the modified accrual basis of accounting, revenue is recognized in the accounting period in which it becomes available and measurable, and expenditures in the accounting period in which the fund liability is incurred, if measurable. Expenditures in the National School Lunch Program, National School Breakfast Program and the Food Distribution Program are not specifically attributable to this revenue source and are shown on the accompanying Schedule in an amount equal to revenue for balancing purposes only. The District values revenues and expenditures for the Food Distribution Program based on the value of commodities received. Grant funds are considered to be earned to the extent of expenditures made under the provisions of the grant. Accordingly, when such funds are received, they are recorded as due to other governments until related and authorized expenditures have been made. If balances have not been expended by the end of the project period, grantors may require the District to refund all or part of the unused amount.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.