Notes to SEFA
Accounting Policies: NOTE 1 – BASIS OF PRESENTATION & SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal award activity of
Felicity-Franklin Local School District (the District) under programs of the federal government for the year ended
June 30, 2024 and is prepared in accordance with the cash basis of accounting. The information on this Schedule is
prepared 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 District, it is not intended to and does
not present the financial position or changes in net position of the District. Such expenditures are recognized following
the cost principles contained in Uniform Guidance wherein certain types of expenditures may or may not be allowable
or may be limited as to reimbursement.
NOTE 2 – INDIRECT COST RATE
CFR Section 200.414 of the Uniform Guidance allows a non-federal entity that has never received a negotiated indirect
cost rate to charge a de minimis rate of 10% of modified total direct costs to indirect costs. The District has elected not
to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance.
NOTE 3 - CHILD NUTRITION CLUSTER
The District commingles cash receipts from the U.S. Department of Agriculture with similar State grants. When
reporting expenditures on this Schedule, the District assumes it expends federal monies first.
NOTE 4 – FOOD DONATION PROGRAM
The District reports commodities consumed on the Schedule at the entitlement value. The District allocated donated
food commodities to the respective program that benefitted from the use of those donated food commodities.
De Minimis Rate Used: N
Rate Explanation: n/a