Notes to SEFA
Accounting Policies: *For all Federal programs, the District uses the fund types specified in the Texas Education Agency’s
Financial Accountability System Resource Guide. Special revenue funds are used to account for resources
restricted to, or designated for, specific purposes by a grantor. Federal and state financial assistance generally
is accounted for in a Special Revenue Fund. Generally, unused balances are 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.
The Governmental Fund types are accounted for using a current financial resources measurement focus. All
Federal grant funds were accounted for in a Special Revenue Fund or, in some instances, in the General Fund
which are Governmental Fund type funds.
With this measurement focus, only current assets and current liabilities and the fund balance are included on
the Balance Sheet. Operating statements of these funds present increases and decreases in net current assets.
The modified accrual basis of accounting is used for the Governmental Fund types. 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. Federal grant funds 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.
∗ The District must submit to the pass-through entity, no later than 90 calendar days (or an earlier date as
agreed upon by the pass-through entity and the District) after the end date of the period of performance, all
financial, performance, and other reports as required by the terms and conditions of the Federal award. The
Federal awarding agency or pass-through entity may approve extensions when requested and justified by the
non-federal entity, as applicable (2 CFR 200.344(a)).
Unless the Federal awarding agency or pass-through entity authorizes an extension, a non-federal entity must
liquidate all financial obligations incurred under the Federal award no later than 120 calendar days after the
end date of the performance period as specified in the terms and conditions of the Federal award (2 CFR
200.344(b)).
∗ CFDA numbers for commodity assistance are the CFDA numbers of the programs under which USDA
donated the commodities.
∗ Indirect cost reimbursement for federal programs for this fiscal year was received in the amount of $267,678.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.