Notes to SEFA
Title: RECONCILIATION OF FEDERAL EXPENDITURES
Accounting Policies: The Schedule of Expenditures of Federal Awards (the Schedule) relates only to federalprograms administered by The Board of Education of Montgomery County, Maryland (theBoard). It should be read in conjunction with the Boards basic financial statements and theaccompanying notes. The federal programs are subject to the accounting policies andprocedures of the Board, which conform to accounting principles generally accepted in theUnited States for governmental entities.The federal grant programs account for the expenditure of funds by the Board in the Generaland Enterprise funds. Expenditures represent direct costs of operating programs, principallypersonnel, capital projects, and fringe benefit costs. Expenditures of grant funds are madefor the purposes specified by the grantor, which include certain restrictions. The grantor mayultimately disallow certain expenditures which the Board has charged to grant funds. In theevent of final disallowance, the funds will be reimbursed to the federal government by theBoard.The federal share of the enterprise funds is commingled with state and local funding, as wellas revenues provided from user charges. Expenditures are assumed to be paid first from thefederal revenues for purposes of the Schedule. Commodities received from the U.S.Department of Agriculture are valued at fair market value and recorded as expenditureswhen used. During the fiscal year ended June 30, 2022, the fair market value ofcommodities consumed was $5,127,668.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
Federal expenditures in the Boards Annual Comprehensive Financial Report (ACFR) reconcile to the Schedule of Expenditures of Federal Awards as follows: Genera; Fund Federal Expenditures $302,447,234 Capital Fund Federal Expenditures 2,077,855 Enterprise Fund Federal Expenditures 94,089,032 Total Federal Expenditures per the ACFR 398,614,121 Add: Federal Funds classified as reduction of expenditures COVID-19 Disaster Grants 13,229,592 Prior Year SEFA Expenditure Corrections 157,150 Less: Funds not included on the Schedule: Medical Assistance (4,687,446) ERATE (2,077,855) Medicare Part D (34,112,264) FY21 School Safety Safe Schools Grant 164 (24,998) Total Reported per Single Audit $371,098,300