Audit 343043

Title: principal Accounting Policies: Basis of Accounting – The expenditures on the accompanying schedule of expenditures of federal awards are presented using the modified accrual basis of accounting, with the exception of the National School Lunch Program, School Breakfast Program and the National School Lunch-Non-Cash Program. Under the modified accrual basis of accounting, revenue is recognized in the accounting period in which they become available and measurable, and expenditures in the accounting period in which the fund liability is incurred, if measurable. Expenditures in the National School Lunch Program, School Breakfast Program and the National School Lunch-Non-Cash Program are not specifically attributable to this revenue source and are shown on the accompanying schedule of expenditures of federal awards in an amount equal to revenue for balancing purposes only. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. General – The accompanying schedule of expenditures of federal awards presents all federal expenditures of the Florence Independent School District (the “District”).Basis of Accounting – The expenditures on the accompanying schedule of expenditures of federal awards are presented using the modified accrual basis of accounting, with the exception of the National School Lunch Program, School Breakfast Program and the National School Lunch-Non-Cash Program. Under the modified accrual basis of accounting, revenue is recognized in the accounting period in which they become available and measurable, and expenditures in the accounting period in which the fund liability is incurred, if measurable. Expenditures in the National School Lunch Program, School Breakfast Program and the National School Lunch-Non-Cash Program are not specifically attributable to this revenue source and are shown on the accompanying schedule of expenditures of federal awards in an amount equal to revenue for balancing purposes only.Relationship to Basic Financial Statements – Expenditures of federal awards area reported in the District’s basic financial statement in the special revenue funds.Relationship to Federal Financial Reports – Amounts reported in the accompanying schedule of expenditures of federal awards agree with the amounts reported in the related federal financial reports in all significant respects.Valuation of Non-cash Programs – The District values revenues and expenditures for the National School Lunch-Non-Cash Program based on the value of commodities received.