Notes to SEFA
Title: Note 1 - Basis of Presentation
Accounting Policies: Note 2 Summary of Significant Accounting PoliciesThe District accounts for all awards under federal programs in the General and Certain Special Revenue Funds in accordance with the Texas Education Agencys Financial Accountability System Resource Guide. These programs are accounted for using a current financial resources measurement focus.The modified accrual basis of accounting is used for the General and Special Revenue funds. This basis of accounting recognizes revenues in the accounting period in which they become susceptible to accrual, i.e., both measurable and available, and expenditures in the accounting period in which the liability is incurred, if measurable, except for certain compensated absences and claims and judgments, which are recognized when the obligations are expected to be liquidated with expendable available financial resources.Federal grant revenues are earned to the extent of expenditures made under the provisions of the grant, and, accordingly, when such amounts are received, they are recorded as deferred revenues until earned. Generally, unused balances are close of specified project periods. The District has elected not to use the 10percent de minimis indirect cost rate allowed under the Uniform Guidance.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate. See last paragraph, last sentence in above note.
The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of the District under programs of the federal government for the year ended June 30, 2022. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule of the operations of the District, it is not intended to and does not present the financial position, changes in net position, or cash flows of the District.
Title: Note 3 - Reconciliation of Basic Financial Statements
Accounting Policies: Note 2 Summary of Significant Accounting PoliciesThe District accounts for all awards under federal programs in the General and Certain Special Revenue Funds in accordance with the Texas Education Agencys Financial Accountability System Resource Guide. These programs are accounted for using a current financial resources measurement focus.The modified accrual basis of accounting is used for the General and Special Revenue funds. This basis of accounting recognizes revenues in the accounting period in which they become susceptible to accrual, i.e., both measurable and available, and expenditures in the accounting period in which the liability is incurred, if measurable, except for certain compensated absences and claims and judgments, which are recognized when the obligations are expected to be liquidated with expendable available financial resources.Federal grant revenues are earned to the extent of expenditures made under the provisions of the grant, and, accordingly, when such amounts are received, they are recorded as deferred revenues until earned. Generally, unused balances are close of specified project periods. The District has elected not to use the 10percent de minimis indirect cost rate allowed under the Uniform Guidance.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate. See last paragraph, last sentence in above note.
The following is a reconciliation of expenditures of federal awards program per the Schedule of Expenditures of Federal Awards and expenditures reported in the financial statements as follows: See notes to financial statements for chart/table.