Notes to SEFA
Title: SCOPE OF AUDIT PURSUANT TO THE UNIFORM GUIDANCE
Accounting Policies: The Schools grant funds are accounted for on the modified accrual basis of accounting. Under the modified accrual basis, grant revenues are recognized when received and expenditures are recorded when paid. These grant funds are included in the Contributions, donations, and grants line of the Consolidated Statement of Revenues, Expenditures, and Changes in Fund Balance Regulatory Basis. The School is the recipient of federal and state grant awards. The grant programs are administered by various departments within the School. The activities of these departments are monitored by School staff to ensure compliancewith the requirements of grants.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
All federal and state financial award programs of Arkansas Arts Academy and Subsidiary (the School) are included in the scope of the Uniform Guidance audit. For purposes of this schedule, federal awards include those received from other agencies, the original source of which was a federal agency.
Title: RELATIONSHIP TO FEDERAL FINANCIAL REPORTS
Accounting Policies: The Schools grant funds are accounted for on the modified accrual basis of accounting. Under the modified accrual basis, grant revenues are recognized when received and expenditures are recorded when paid. These grant funds are included in the Contributions, donations, and grants line of the Consolidated Statement of Revenues, Expenditures, and Changes in Fund Balance Regulatory Basis. The School is the recipient of federal and state grant awards. The grant programs are administered by various departments within the School. The activities of these departments are monitored by School staff to ensure compliancewith the requirements of grants.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
Grant expenditures reports as of June 30, 2022, which have been submitted to grantor agencies will, in some cases, differ slightly from amounts disclosed herein. The reports prepared for grantor agencies are typically prepared at a later date and often reflect refined estimates of the year-end accruals. The reports will agree at termination of the grant as the discrepancies noted are timing differences.
Title: SUB RECIPIENTS
Accounting Policies: The Schools grant funds are accounted for on the modified accrual basis of accounting. Under the modified accrual basis, grant revenues are recognized when received and expenditures are recorded when paid. These grant funds are included in the Contributions, donations, and grants line of the Consolidated Statement of Revenues, Expenditures, and Changes in Fund Balance Regulatory Basis. The School is the recipient of federal and state grant awards. The grant programs are administered by various departments within the School. The activities of these departments are monitored by School staff to ensure compliancewith the requirements of grants.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
No awards were provided to sub recipients.
Title: MEDICAID REIMBURSEMENTS
Accounting Policies: The Schools grant funds are accounted for on the modified accrual basis of accounting. Under the modified accrual basis, grant revenues are recognized when received and expenditures are recorded when paid. These grant funds are included in the Contributions, donations, and grants line of the Consolidated Statement of Revenues, Expenditures, and Changes in Fund Balance Regulatory Basis. The School is the recipient of federal and state grant awards. The grant programs are administered by various departments within the School. The activities of these departments are monitored by School staff to ensure compliancewith the requirements of grants.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
Medicaid reimbursements are defined as contracts for services and not federal awards; therefore, they are not covered by the reporting requirements of the Uniform Guidance. Total Medicaid funding for the year ended June 30, 2022 amounted to $166,076 from the Arkansas Department of Health and Human Services.