Audit 339788

Title: NotesToSEFA Accounting Policies: 1. General The accompanying schedule of expenditures of federal awards includes the federal grant activity of Henderson 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 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. Special Revenue Funds are used to account for resources restricted to, or designed for, specific purposes by a grantor. Generally, unused balances are returned to the grantor at the close of specified project periods. 2. Basis of Accounting The accounting and financial reporting treatment applied to Special Revenue Funds is the current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements of these funds present increases and decreases in fund balances. The modified accrual basis of accounting recognizes revenues in the accounting period in which they become measurable and available, and expenditures in the accounting period in which the fund liability is incurred, except for unmatured interest on general long-term debt, which is recognized when matured and certain compensated absences, pension liabilities, other postemployment benefits, and claims and judgments, which are recognized when the obligations are expected to be liquidated with expendable available financing resources. Federal grant funds are considered to be earned as soon as all eligibility requirements imposed by the provider are met and expenditures have been incurred, and, accordingly, when such funds are received in advance, they are recorded as deferred revenues until earned. 3. Availability of Funds The period of availability for federal grant funds for the purpose of liquidation of outstanding obligations made on or before the ending date of the federal project period extended 30 days beyond the federal project period ending date. 4. Other The District received $201,829 of SHARS revenue and Qualified School Construction Bonds interest subsidy of $306,004 during the year. This revenue is recorded in the General Fund and the Debt Service Fund. The revenue is not considered federal financial assistance for purposes of the Schedule of Expenditures of Federal Awards. De Minimis Rate Used: N Rate Explanation: N/A 1. General The accompanying schedule of expenditures of federal awards includes the federal grant activity of Henderson 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 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. Special Revenue Funds are used to account for resources restricted to, or designed for, specific purposes by a grantor. Generally, unused balances are returned to the grantor at the close of specified project periods. 2. Basis of Accounting The accounting and financial reporting treatment applied to Special Revenue Funds is the current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements of these funds present increases and decreases in fund balances. The modified accrual basis of accounting recognizes revenues in the accounting period in which they become measurable and available, and expenditures in the accounting period in which the fund liability is incurred, except for unmatured interest on general long-term debt, which is recognized when matured and certain compensated absences, pension liabilities, other postemployment benefits, and claims and judgments, which are recognized when the obligations are expected to be liquidated with expendable available financing resources. Federal grant funds are considered to be earned as soon as all eligibility requirements imposed by the provider are met and expenditures have been incurred, and, accordingly, when such funds are received in advance, they are recorded as deferred revenues until earned. 3. Availability of Funds The period of availability for federal grant funds for the purpose of liquidation of outstanding obligations made on or before the ending date of the federal project period extended 30 days beyond the federal project period ending date. 4. Other The District received $201,829 of SHARS revenue and Qualified School Construction Bonds interest subsidy of $306,004 during the year. This revenue is recorded in the General Fund and the Debt Service Fund. The revenue is not considered federal financial assistance for purposes of the Schedule of Expenditures of Federal Awards.