The Schedule of Expenditures of Federal and State Awards (the “Schedule”) presents the activity of all applicable federal and state award programs of Mercedes Independent School District (the “District”). The District’s reporting entity is defined in Note I of the financial statements. Federal and state awards received directly from federal and state agencies, as well as federal and state awards passed through other government agencies, are included on the Schedule. In accordance with TEA instructions, federal and state funds for the School Health and Related Services (SHARS), TRS Care On-Behalf Payments, State Allotment, Foundation School Program Entitlements, and Per Capita Apportionment have been excluded from the Schedule. Federal and state program revenues for J.R.O.T.C, the Child Nutrition Cluster, SHARS, Medicaid Administrative Claims (MAC), Commodity Supplemental Food Program, Child & Adult Care Food Program, TRS Care On-Behalf Payments, State Allotment, Foundation School Program Entitlements, and Per Capita Apportionment are reported in the General Fund. All other federal and state programs are accounted for and reported in Special Revenue Funds.
The Schedule is presented using the modified accrual basis of accounting. The District’s significant accounting policies, including the modified accrual basis of accounting, are presented in Note I of the basic financial statements. The 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) and the Texas Grant Management Standards. Therefore, some of the amounts presented in this Schedule may differ from amounts presented in, or used in the preparation of, the financial statements.
None of the federal and state programs expended by the District were provided to subrecipients.
The District has received a negotiated indirect cost rate from TEA and may not elect to use a de minimis cost rate of 10% as described at 2 CFR §200.414(f)—Indirect (F&A) costs.
The following is the reconciliation of federal and state revenues and the Schedule for the year ended August 31, 2025. Federal and State revenues per the Statement of Revenues, Expenditures and Changes in Fund Balance- Government Funds (Exhibit C-3) $ 58,510,041 Less: SHARS 76,450 TRS Care On-Behalf Payments 2,632,158 State Allotment 1,681,541 Foundation School Program Entitlements 36,654,314 Per Capita Apportionment 2,333,513 Other State Revenue 123,428 Federal and State expenditures $ 15,008,637