Notes to SEFA
Title: Loan Programs
Accounting Policies: Accounting policies and financial reporting practices permitted for municipalities in Massachusetts are prescribed by the Uniform Municipal Accounting System (UMAS) promulgated by the Commonwealth of Massachusetts Department of Revenue. The accompanying Schedule of Expenditures of Federal Awards includes the federal grant transactions of the District during the year ended June 30, 2022. The information on this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 2 00, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) for audits of state and local governments. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the general-purpose financial statements. Because the Schedule presents only a selected portion of the operations of the District, it is not intended to and does not present the financial position, changes in fund balances, or cash flows of the district. The receipts and proceeds from federal grants are recorded on a modified accrual basis of accounting. The modified accrual basis of accounting recognizes revenues in the accounting period in which they become both measurable and available and it recognizes expenditures in the accounting period in which the fund liability is incurred, if measurable. "Measurable" means the amount of the transaction can be determined.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The District participates in the Federal Direct Student Loan Program, which provides federal loans directly to students rather than through private lending institutions. The District is responsible only for the origination of the loan (e.g., determining student eligibility and disbursing loan proceeds to the borrower). The Direct Loan Servicer is then responsible for the overall servicing and collection of the loan. Accordingly, these loans are not included in the District's financial statements. The amount reported on the Schedule of Expenditures of Federal Awards for the loan program represents the total value of the loans awarded and paid to the District's students during the year ended June 30, 2022.
Title: Program Clusters
Accounting Policies: Accounting policies and financial reporting practices permitted for municipalities in Massachusetts are prescribed by the Uniform Municipal Accounting System (UMAS) promulgated by the Commonwealth of Massachusetts Department of Revenue. The accompanying Schedule of Expenditures of Federal Awards includes the federal grant transactions of the District during the year ended June 30, 2022. The information on this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 2 00, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) for audits of state and local governments. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the general-purpose financial statements. Because the Schedule presents only a selected portion of the operations of the District, it is not intended to and does not present the financial position, changes in fund balances, or cash flows of the district. The receipts and proceeds from federal grants are recorded on a modified accrual basis of accounting. The modified accrual basis of accounting recognizes revenues in the accounting period in which they become both measurable and available and it recognizes expenditures in the accounting period in which the fund liability is incurred, if measurable. "Measurable" means the amount of the transaction can be determined.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The selection of major federal programs provides consideration to the U.S. Department of Education Student Financial Assistance (SFA) Cluster (CFDA No. 84.063, Federal Pell Grant Program and CFDA No. 84.268, Federal Direct Student Loans); the Special Education (IDEA) Cluster (CFDA No. 84.027, Special Education Grants to States); and the Child Nutrition Cluster (CFDA No. 10.555, National School Lunch Program).