Notes to SEFA
Title: Note 1. Basis of Presentation
Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years.
De Minimis Rate Used: N
Rate Explanation: The Newmarket School District has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) includes the federal award activity of the Newmarket School District under programs of the federal government for the year ended June 30, 2024. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Newmarket School District, it is not intended to and does not present the financial position and changes in net position and fund balance of the Newmarket School District.
Title: Note 4. Food Donation
Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years.
De Minimis Rate Used: N
Rate Explanation: The Newmarket School District has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
Nonmonetary assistance is reported in the Schedule at the fair market value of the commodities on the date received. For the fiscal year ended June 30, 2024, the value of food donations received was $38,348.
Title: Note 5. Reporting of IDEA Grant Preschool Portion
Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years.
De Minimis Rate Used: N
Rate Explanation: The Newmarket School District has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
The Newmarket School District receives funding under the Individuals with Disabilities Education Act (IDEA), which includes allocations for preschool programs. However, the Newmarket School District’s general ledger does not separately track the preschool portion of the IDEA grant. To comply with reporting requirements, the Newmarket School District has allocated a portion of the IDEA funds to preschool programs based on direct costs utilizing an internal worksheet. The total amount of IDEA funds reported on the Schedule of Expenditures of Federal Awards (SEFA) includes this allocated preschool portion. Efforts are being made to enhance the financial tracking systems to separately identify and report the preschool portion of the IDEA grant in future fiscal years.