Notes to SEFA
All federal grant operations of Portales Municipal Schools (the “District”) are included in the scope of the Office of Management and Budget (“OMB”) Uniform Grant Guidance audit (the “Single Audit”). The Single Audit was performed in accordance with the provisions of the OMB Circular Compliance Supplement (Revised November 2025 the “Compliance Supplement”). Compliance testing of all requirements is described in the Compliance Supplement, was performed for the grant programs noted below. These programs represent all federal award programs and other grants with fiscal year 2025 cash and non-cash expenditures to ensure coverage of at least 40% (HIGH risk auditee) of federally granted funds. Actual coverage is approximately 55% of total cash and non-cash federal award program expenditures. MAJOR FEDERAL PROGRAM ASSISTANCE NO. EXPENDITURES Special Education (IDEA) Cluster 84.027 & 84.173 $ 8 91,933 Title I Grants to Local Educational Agencies 84.010A 1 ,323,403 COVID-19: American Rescue Plan - ESSER Fund 84.425U 8 88,134 Total $ 3 ,103,470 The District had one (1) federal program considered to be a High-Risk Type A programs for the year ended June 30, 2025. The U.S. Department of Education is the District’s oversight agency for single audit. Basis of presentation The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) includes the federal grant activity of the District under programs of the federal government for the year ended June 30, 2025. The information in this schedule is presented in accordance with the requirements of the Office of Management and Budget (OMB) Uniform Grant Guidance. Because the Schedule presents only a selected portion of the operations of the District, it is not intended to and does not present the financial position and changes in net position of the District. All federal programs considered active during the year ended June 30, 2025, are reflected on the Schedule. An active federal program is defined as a federal program for which there were receipts or disbursements of funds or accrued (deferred) grant revenue adjustments during the fiscal year or a federal program considered as not completed or closed out at the beginning of the fiscal year. The Schedule is prepared using the accrual basis of accounting. Grant revenues are recorded for financial reporting purposes when the District has met the qualifications for the respective grant. Grant revenues for the Food Donation Program are based upon commodities received, at amounts per standard price listing, published quarterly by the United States Department of Agriculture (the “USDA”). In addition, there is no federal insurance in effect during the year and loan or loan guarantee outstanding at year end. Accrued and deferred reimbursements Various reimbursement procedures are used for Federal awards received by the District. Consequently, timing differences between expenditures and program reimbursements can exist at the beginning and end of the year. Accrued balances at year end represent an excess of reimbursable expenditures over receipts to date. Deferred balance at year-end represent an excess of cash receipts over reimbursable expenditure to date. Generally, accrued or deferred balances covered by differences in the timing of cash receipts and expenditures will be reversed in the remaining grant period.
There District has not elected to use the 15% de minimis indirect cost. The District uses 5.29% indirect cost rate as determined by New Mexico Public Education Department.
The differences between the federal awards received (Intergovernmental sources – federal) during the year ended June 30, 2025 and the federal awards expended during the year are as follows: BALANCE Intergovernmental - federal sources $ 6 ,774,938 Indirect costs from federal programs ( 277,833) Unexpended federal sources from current year ( 132,058) Federal sources not available for current resources 2 5,466 Exempt revenues ( 84,189) Revenues received as vendor ( 649,859) Total Expenditures of Federal Awards $ 5,656,465