Notes to SEFA
Title: NOTES ON ACCOUNTING POLICIES FOR FEDERAL PROGRAMS
Accounting Policies: The District utilizes the fund types specified by the Texas Education Agency in the
Financial Accountability System Resource Guide.
Special Revenue Funds are used to account for resources restricted to, or designed for,
specific purposes by a grantor. Federal and state financial assistance generally is accounted
for in the General Fund, a Special Revenue Fund or a Capital Projects Fund.
The accounting and financial reporting treatment applied to a fund is determined by its
measurement focus. The Governmental Fund types and expendable Trust Fund are
accounted for using a current financial resources measurement focus. All federal grant
funds were accounted for in a Governmental Fund type. With this measurement focus,
only current assets and current liabilities generally are included on the balance sheet.
Operating statements of these funds present increases (i.e., revenues and other financing
sources) and decreases (i.e., expenditures and other financing uses) in fund balance.
The modified accrual basis of accounting is used for the Governmental Fund Types, The
Expendable Trust Fund, and Agency Funds. This basis of accounting recognizes revenues
in the accounting period in which they become susceptible to accrual, i.e., both measurable
and available, and expenditures in the accounting period in which the fund liability is
incurred, if measurable, except for unmatured interest on General Long-Term Debt, which
is recognized when due, and certain compensated absences and claims and judgments,
which are recognized when the obligations are expected to be liquidated with expendable
available financial resources.
Since the entity has an agency approved Indirect Recovery Rate it has elected not to use
the 10 percent de minimis cost rate as permitted in the UG, section 200.414.
Federal grant funds are considered to be earned to the extent of expenditures made under
the provisions of the grant. The District uses the reimbursement method of reporting for
Federal grants. Funds are requested and received after the expenditures have been made.
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, in accordance with the
Uniform Guidance.
De Minimis Rate Used: N
Rate Explanation: Since the entity has an agency approved Indirect Recovery Rate it has elected not to use
the 10 percent de minimis cost rate as permitted in the UG, section 200.414.
The District utilizes the fund types specified by the Texas Education Agency in the
Financial Accountability System Resource Guide.
Special Revenue Funds are used to account for resources restricted to, or designed for,
specific purposes by a grantor. Federal and state financial assistance generally is accounted
for in the General Fund, a Special Revenue Fund or a Capital Projects Fund.
The accounting and financial reporting treatment applied to a fund is determined by its
measurement focus. The Governmental Fund types and expendable Trust Fund are
accounted for using a current financial resources measurement focus. All federal grant
funds were accounted for in a Governmental Fund type. With this measurement focus,
only current assets and current liabilities generally are included on the balance sheet.
Operating statements of these funds present increases (i.e., revenues and other financing
sources) and decreases (i.e., expenditures and other financing uses) in fund balance.
The modified accrual basis of accounting is used for the Governmental Fund Types, The
Expendable Trust Fund, and Agency Funds. This basis of accounting recognizes revenues
in the accounting period in which they become susceptible to accrual, i.e., both measurable
and available, and expenditures in the accounting period in which the fund liability is
incurred, if measurable, except for unmatured interest on General Long-Term Debt, which
is recognized when due, and certain compensated absences and claims and judgments,
which are recognized when the obligations are expected to be liquidated with expendable
available financial resources.
Since the entity has an agency approved Indirect Recovery Rate it has elected not to use
the 10 percent de minimis cost rate as permitted in the UG, section 200.414.
Federal grant funds are considered to be earned to the extent of expenditures made under
the provisions of the grant. The District uses the reimbursement method of reporting for
Federal grants. Funds are requested and received after the expenditures have been made.
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, in accordance with the
Uniform Guidance.