Notes to SEFA
The District uses the fund types specified in the Texas Education Agency’s Financial Accountability System Resource Guide for all Federal programs. Special revenue funds generally account for federal and state financial assistance and resources restricted to or designated for specific purposes by a grantor.
All Federal grant funds were accounted for in a Special Revenue Fund, which is a Governmental Fund type. With this measurement focus, only current assets and liabilities are generally included on the balance sheet. Operating statements of these funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. The modified-accrual basis of accounting is used for governmental funds.This basis of accounting recognizes revenues in the accounting period in which they become both measurable and available and expenditures in the accounting period in which the fund liability is incurred, except that principal and interest on general long-term debt are recognized when due. Federal grant funds are earned to the extent of expenditures made under the provisions of the grant. Accordingly, when such funds are received, they are recorded as deferred revenues until earned.
The period of availability for federal grant funds for the purpose of liquidation of outstanding obligations made on or before the ending date of the federal project period is extended 30 days beyond the federal project period ending date, in accordance with provisions in Section H, Period of Availability of Federal Funds, Part 3, 0MB Uniform Guidance.
Reconciliation of the amount reported in the Schedule of Expenditures of Federal Awards to Exhibit C-3 is as follows: Amount reported on the SEFA $3,947,491 plus Federal Revenues disturbuted by TEA in the General Fund 167,380 equals total federal revenues of $4,114,871 in Exhibit C-3.
The District has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.