Notes to SEFA
Accounting Policies: GENERALThe Schedule of Expenditures of Federal Awards (SEFA) presents the activity of all applicable federal awardprograms of Mercedes ISD (the District). The Districts reporting entity is defined in Note I of the financialstatements. Federal awards received directly from federal agencies, as well as federal awards passed throughother government agencies, are included on the SEFA.In accordance with TEA instructions, federal funds for the School Health and Related Services (SHARS) havebeen excluded from the Schedule of Expenditures of Federal Awards.Federal program revenues for J.R.O.T.C, the Child Nutrition Cluster, (SHARS), Medicaid AdministrativeClaims (MAC), and reimbursement of indirect costs are reported in the General Fund. All other federalprograms are accounted for and reported in Special Revenue Funds.2. BASIS OF ACCOUNTING AND PRESENTATIONThe SEFA is presented using the modified accrual basis of accounting. The Districts significant accountingpolicies, including the modified accrual basis of accounting, are presented in Note 1 of the basic financialstatements.The SEFA is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards(Uniform Guidance). Therefore, some of the amounts presented in this Schedule may differ from amountspresented in, or used in the preparation of, the financial statements.3. PASS-THROUGH EXPENDITURESNone of the federal programs expended by the District were provided to subrecipients.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.