Notes to SEFA
Title: Basis of Funding
Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis ofaccounting. Such expenditures are recognized following the cost principles contained in theUniform Guidance, wherein certain types of expenditures are not allowable or are limited as toreimbursement.There may be situations where federal expenditures presented in the schedule of expendituresof federal awards also include expenditures subject to preUniform Guidance requirements. TheUS Department of Education (USDE) has clarified under 34 CFR 76.10, carryover funds aresubject to the regulations in effect during the carryover period which is the last 12 months ofthe 27month of availability. Therefore, all funds that became carryover on October 1, 2015,must follow the new EDGAR regulations regardless of the original start date of the Notice ofGrant Award.Federal regulations applicable to state administered grants are subject to the requirements ofPart 76 of the Uniform Guidance. As of October 1, 2015, these multiyear grants are to begoverned by the new Uniform Guidance rather than the OMB Circulars that were in effect wheneach grant was initially awarded.Such expenditures are recognized in the cost principles contained in Title 2 U.S. Code of FederalRegulations Part 200, Uniform Administrative Requirements, Cost Principles, and AuditRequirements for Federal Awards, wherein certain types of expenditures are not allowable orare limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
Federal funding for Food Services under child nutrition programs is primarily based upon thenumber and type of meals served and in user charges as reported to the US Department ofAgriculture. Federal funding received related to various grant programs is based upon periodicreports detailing reimbursable expenditures made in compliance with the program guidelines tothe grantor agencies. The programs are governed by various rules and regulations of thegrantors. Amounts received and receivable under these various funding programs are subject toperiodic audit and adjustment by the funding agencies. To the extent, if any, that the District hasnot complied with all the rules and regulations with respect to performance, financial orotherwise, adjustment to or return of funding monies may be required. In the opinion of theDistrict's management, there are no significant contingent liabilities relating to matters ofcompliance and, accordingly, no provision has been made in the basic financial statements forsuch contingences.