Title: Note 3 - Period of Availability
Accounting Policies: Note 1 - Basis of Presentation The Region 4 Education Service Center (the Center) utilizes the fund types specified in the TEA’s Financial Accounting System Resource Guide. Special Revenue Funds – Special Revenue Funds are used to account for resources restricted to or committed for specific purposes by a grantor. Federal and state financial assistance generally is accounted for in a Special Revenue Fund. Generally, unused balances must be returned to the grantor at the close of specified project periods. The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. Governmental funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets, deferred outflows of resources, current liabilities, and deferred inflows of resources generally are included on the balance sheet. Operating statements of these funds present increases (revenues and other financing sources) and decreases (expenditures and other financing uses). The modified accrual basis of accounting is used for governmental funds. This basis of accounting recognizes revenue in the accounting period in which it becomes measurable and available. Expenditures are recorded in the accounting period in which the fund liability is incurred, if measurable, except for unmatured interest on long-term debt, which is recognized when due, and certain compensated absences and judgments, which are recognized when the obligations are expected to be liquidated with expendable available financial resources. Federal grants are considered to be earned to the extent of expenditures made under the provisions of the grant, and, accordingly when such funds are received, they are recorded as unearned revenues until earned.
De Minimis Rate Used: N
Rate Explanation: Note 2 - De minimis cost rate The Center has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.
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 extended 30 days beyond the federal project period ending date, in accordance with the provisions of the Uniform Guidance.
Title: Note 4 - Basis of Funding
Accounting Policies: Note 1 - Basis of Presentation The Region 4 Education Service Center (the Center) utilizes the fund types specified in the TEA’s Financial Accounting System Resource Guide. Special Revenue Funds – Special Revenue Funds are used to account for resources restricted to or committed for specific purposes by a grantor. Federal and state financial assistance generally is accounted for in a Special Revenue Fund. Generally, unused balances must be returned to the grantor at the close of specified project periods. The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. Governmental funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets, deferred outflows of resources, current liabilities, and deferred inflows of resources generally are included on the balance sheet. Operating statements of these funds present increases (revenues and other financing sources) and decreases (expenditures and other financing uses). The modified accrual basis of accounting is used for governmental funds. This basis of accounting recognizes revenue in the accounting period in which it becomes measurable and available. Expenditures are recorded in the accounting period in which the fund liability is incurred, if measurable, except for unmatured interest on long-term debt, which is recognized when due, and certain compensated absences and judgments, which are recognized when the obligations are expected to be liquidated with expendable available financial resources. Federal grants are considered to be earned to the extent of expenditures made under the provisions of the grant, and, accordingly when such funds are received, they are recorded as unearned revenues until earned.
De Minimis Rate Used: N
Rate Explanation: Note 2 - De minimis cost rate The Center has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.
Federal funding received related to various grant programs is based upon periodic reports detailing reimbursable expenditures made in compliance with the program guidelines to the grantor agencies. The programs are governed by various rules and regulations of the grantors. Amounts received and receivable under these various funding programs are subject to periodic audit and adjustment by the funding agencies. To the extent, if any, that the Center has not complied with all the rules and regulations with respect to performance, financial or otherwise, adjustment to or return of funding monies may be required. In the opinion of the Center’s management, there are no significant contingent liabilities relating to matters of compliance and, accordingly, no provision has been made in the basic financial statements for such contingences.
Title: Note 5 - Reclassification of Grant Expenditures
Accounting Policies: Note 1 - Basis of Presentation The Region 4 Education Service Center (the Center) utilizes the fund types specified in the TEA’s Financial Accounting System Resource Guide. Special Revenue Funds – Special Revenue Funds are used to account for resources restricted to or committed for specific purposes by a grantor. Federal and state financial assistance generally is accounted for in a Special Revenue Fund. Generally, unused balances must be returned to the grantor at the close of specified project periods. The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. Governmental funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets, deferred outflows of resources, current liabilities, and deferred inflows of resources generally are included on the balance sheet. Operating statements of these funds present increases (revenues and other financing sources) and decreases (expenditures and other financing uses). The modified accrual basis of accounting is used for governmental funds. This basis of accounting recognizes revenue in the accounting period in which it becomes measurable and available. Expenditures are recorded in the accounting period in which the fund liability is incurred, if measurable, except for unmatured interest on long-term debt, which is recognized when due, and certain compensated absences and judgments, which are recognized when the obligations are expected to be liquidated with expendable available financial resources. Federal grants are considered to be earned to the extent of expenditures made under the provisions of the grant, and, accordingly when such funds are received, they are recorded as unearned revenues until earned.
De Minimis Rate Used: N
Rate Explanation: Note 2 - De minimis cost rate The Center has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.
Expenditures incurred in the year ended August 31, 2023 totaling $4,631,567, were reclassified from ESSER THL PRINTING LOGISTICS (ALN 84.425D, Fund 281) to ESSER THL PRINTING LOGISTICS GRANT (ALN 84.425U, Fund 282). These expenditures were allowable and incurred during the period of performance for both awards.
Title: Note 6 - Reconciliation to Basic Financial Statements
Accounting Policies: Note 1 - Basis of Presentation The Region 4 Education Service Center (the Center) utilizes the fund types specified in the TEA’s Financial Accounting System Resource Guide. Special Revenue Funds – Special Revenue Funds are used to account for resources restricted to or committed for specific purposes by a grantor. Federal and state financial assistance generally is accounted for in a Special Revenue Fund. Generally, unused balances must be returned to the grantor at the close of specified project periods. The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. Governmental funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets, deferred outflows of resources, current liabilities, and deferred inflows of resources generally are included on the balance sheet. Operating statements of these funds present increases (revenues and other financing sources) and decreases (expenditures and other financing uses). The modified accrual basis of accounting is used for governmental funds. This basis of accounting recognizes revenue in the accounting period in which it becomes measurable and available. Expenditures are recorded in the accounting period in which the fund liability is incurred, if measurable, except for unmatured interest on long-term debt, which is recognized when due, and certain compensated absences and judgments, which are recognized when the obligations are expected to be liquidated with expendable available financial resources. Federal grants are considered to be earned to the extent of expenditures made under the provisions of the grant, and, accordingly when such funds are received, they are recorded as unearned revenues until earned.
De Minimis Rate Used: N
Rate Explanation: Note 2 - De minimis cost rate The Center has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.
The following is a reconciliation of expenditures of federal awards program per the schedule and expenditures reported on Exhibit C-3: See notes to SEFA for table/chart.