Notes to SEFA
Title: Purpose of Schedule
Accounting Policies: Modified Accrual Basis of Accounting
De Minimis Rate Used: N
Rate Explanation: Direct costs are used.
The schedule of expenditures of federal awards is a supplementary schedule to South Coast
Education Service District’s basic financial statements and is presented for additional analysis.
Because the schedule presents only a selected portion of the activities of the District, it is not
intended to and does not present the financial position, changes in net position, nor the operating
funds’ revenues and expenditures.
Title: Basis of Presentation
Accounting Policies: Modified Accrual Basis of Accounting
De Minimis Rate Used: N
Rate Explanation: Direct costs are used.
The information in the schedule of expenditures of federal awards is presented in accordance with
the audit requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform
Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform
Guidance).
Title: Federal Financial Assistance
Accounting Policies: Modified Accrual Basis of Accounting
De Minimis Rate Used: N
Rate Explanation: Direct costs are used.
The information in the schedule of expenditures of federal awards is presented in accordance with
the audit requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform
Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform
Guidance).
Title: Indirect Cost Rate
Accounting Policies: Modified Accrual Basis of Accounting
De Minimis Rate Used: N
Rate Explanation: Direct costs are used.
The District has elected not to use the 10 percent de minimis indirect cost rate as allowed under the
Uniform Guidance.
Title: Major Programs
Accounting Policies: Modified Accrual Basis of Accounting
De Minimis Rate Used: N
Rate Explanation: Direct costs are used.
The Uniform Guidance establishes criteria to be used in defining major federal financial assistance
programs. Major programs for the District are those programs selected for testing by the auditor
using a risk assessment model, as well as certain minimum expenditure requirements, as outlined
in the Uniform Guidance. Programs with similar requirements may be grouped into a cluster for
testing purposes. The major program of the District is Assistance Listing Number 84.425 ESD
ESSER II and ESSER III.
Title: Reporting Entity
Accounting Policies: Modified Accrual Basis of Accounting
De Minimis Rate Used: N
Rate Explanation: Direct costs are used.
The reporting entity is fully described in the notes to the District’s basic financial statements.
Additionally, the schedule of expenditures of federal awards includes all federal programs
administered by the District for the year ended June 30, 2024.
Title: Revenue and Expenditure Recognition
Accounting Policies: Modified Accrual Basis of Accounting
De Minimis Rate Used: N
Rate Explanation: Direct costs are used.
The receipt and expenditure of federal awards are accounted for under the modified accrual basis
of accounting.