Notes to SEFA
Title: Note 2: Noncash Programs
Accounting Policies: Basis of PresentationThe accompanying schedule of expenditures of federal awards is presented in accordance withthe requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform AdministrativeRequirements, Cost Principles, and Audit Requirements for Federal Awards, using the modifiedaccrual basis of accounting. Such expenditures are recognized following the cost principlescontained in the Uniform Guidance, wherein certain types of expenditures are not allowable orare limited as to reimbursement. Therefore, some amounts presented in this schedule may differfrom amounts presented in the financial statements.
De Minimis Rate Used: N
Rate Explanation: The District has not elected to use the 10% de minimis indirect cost rate allowed in the UniformGuidance, section 414.
The District receives food commodities from the U.S. Department of Agriculture for use in its foodservice program. The commodities are recognized as revenue when received. The commoditiesare recognized as expenses when used by the schools. The majority of the commodities arestored at the individual schools, instead of a central warehouse. As such, the District hasdetermined that the title to the commodities passes to the District upon receipt of the commodities.Since the District has received title to the commodities, the unused commodities are not reflectedas unearned revenue.