Notes to SEFA
Title: Note 3. Madison Area Educational Special Services Unit
Accounting Policies: Note 1. Summary of Significant Accounting Policies
A. Basis of Presentation
The accompanying Schedule of Expenditures of Federal Awards (SEFA) includes the federal
award activity of the School Corporation under programs of the federal government for the
years ended June 30, 2023 and 2024. The information in the SEFA is presented 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 SEFA presents only a select portion of the
operations of the School Corporation, it is not intended to and does not present the financial
position of the School Corporation.
The Uniform Guidance requires an annual audit of nonfederal entities expending a total
amount of federal awards equal to or in excess of $750,000 in any fiscal year unless by
constitution or statute a less frequent audit is required. In accordance with Indiana Code
(IC 5-11-1-25), audits of school corporations shall be conducted biennially. Such audits shall
include both years within the biennial period.
B. Other Significant Accounting Policies
Expenditures reported on the SEFA are reported on the cash basis of accounting. Such
expenditures are recognized following the cost principles contained in the Uniform Guidance,
wherein certain types of expenditures are not allowable or are limited as to reimbursement.
When federal grants are received on a reimbursement basis, the federal awards are
considered expended when the reimbursement is received.
De Minimis Rate Used: N
Rate Explanation: Note 2. Indirect Cost Rate
The School Corporation has elected not to use the 10 percent de minimis indirect cost rate
allowed under the Uniform Guidance.
Note 3. Madison Area Educational Special Services Unit
The School Corporation is a member of the Madison Area Educational Special Services Unit
(Cooperative). As a result, some of the activity for the Special Education Cluster (IDEA) that is
presented on the SEFA is not presented as receipts and disbursements in the financial statement
for the School Corporation. This activity is presented in the financial statement of the
Cooperative's fiscal agent.