Title: Scope of Audit Pursuant to the Uniform Guidance
Accounting Policies: The District’s grant funds are accounted for on the modified accrual basis of accounting. Under the
modified accrual basis, grant revenues are recognized when received and expenditures are recorded
when paid. These grant funds are included in the “Restricted federal aid” line of the Statement of
Revenues, Expenditures, and Changes in Fund Balance – Regulatory Basis. The District is the recipient of
federal grant awards. The grant programs are administered by various departments within the District.
The activities of these departments are monitored by District staff to ensure compliance with the
requirements of grants.
De Minimis Rate Used: N
Rate Explanation: The District has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform
Guidance.
All federal financial award programs of Farmington School District #6 (the “District”) are included in the
scope of the Uniform Guidance audit. For purposes of this schedule, federal awards include those
received from other agencies, the original source of which was a federal agency.
Title: Summary of Significant Accounting Policies
Accounting Policies: The District’s grant funds are accounted for on the modified accrual basis of accounting. Under the
modified accrual basis, grant revenues are recognized when received and expenditures are recorded
when paid. These grant funds are included in the “Restricted federal aid” line of the Statement of
Revenues, Expenditures, and Changes in Fund Balance – Regulatory Basis. The District is the recipient of
federal grant awards. The grant programs are administered by various departments within the District.
The activities of these departments are monitored by District staff to ensure compliance with the
requirements of grants.
De Minimis Rate Used: N
Rate Explanation: The District has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform
Guidance.
The District’s grant funds are accounted for on the modified accrual basis of accounting. Under the
modified accrual basis, grant revenues are recognized when received and expenditures are recorded
when paid. These grant funds are included in the “Restricted federal aid” line of the Statement of
Revenues, Expenditures, and Changes in Fund Balance – Regulatory Basis. The District is the recipient of
federal grant awards. The grant programs are administered by various departments within the District.
The activities of these departments are monitored by District staff to ensure compliance with the
requirements of grants.
Title: Relationship to Federal Financial Reports
Accounting Policies: The District’s grant funds are accounted for on the modified accrual basis of accounting. Under the
modified accrual basis, grant revenues are recognized when received and expenditures are recorded
when paid. These grant funds are included in the “Restricted federal aid” line of the Statement of
Revenues, Expenditures, and Changes in Fund Balance – Regulatory Basis. The District is the recipient of
federal grant awards. The grant programs are administered by various departments within the District.
The activities of these departments are monitored by District staff to ensure compliance with the
requirements of grants.
De Minimis Rate Used: N
Rate Explanation: The District has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform
Guidance.
Grant expenditures reports as of June 30, 2024, which have been submitted to grantor agencies will, in
some cases, differ slightly from amounts disclosed herein. The reports prepared for grantor agencies are
typically prepared at a later date and often reflect refined estimates of the year‐end accruals. The
reports will agree at termination of the grant as the discrepancies noted are timing differences.
Title: 10% De Minimis Indirect Cost Rate
Accounting Policies: The District’s grant funds are accounted for on the modified accrual basis of accounting. Under the
modified accrual basis, grant revenues are recognized when received and expenditures are recorded
when paid. These grant funds are included in the “Restricted federal aid” line of the Statement of
Revenues, Expenditures, and Changes in Fund Balance – Regulatory Basis. The District is the recipient of
federal grant awards. The grant programs are administered by various departments within the District.
The activities of these departments are monitored by District staff to ensure compliance with the
requirements of grants.
De Minimis Rate Used: N
Rate Explanation: The District has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform
Guidance.
The District has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform
Guidance.
Title: Medicaid Reimbursements
Accounting Policies: The District’s grant funds are accounted for on the modified accrual basis of accounting. Under the
modified accrual basis, grant revenues are recognized when received and expenditures are recorded
when paid. These grant funds are included in the “Restricted federal aid” line of the Statement of
Revenues, Expenditures, and Changes in Fund Balance – Regulatory Basis. The District is the recipient of
federal grant awards. The grant programs are administered by various departments within the District.
The activities of these departments are monitored by District staff to ensure compliance with the
requirements of grants.
De Minimis Rate Used: N
Rate Explanation: The District has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform
Guidance.
Medicaid reimbursements are defined as contracts for services and not federal awards; therefore, they
are not covered by the reporting requirements of the Uniform Guidance. Total Medicaid funding for the
year ended June 30, 2024 was $226,028 of which $68,553 was received from the Arkansas Department
of Human Services.