The accompanying schedule of expenditures of federal awards includes the federal grant
activity of Brookeland Independent School District and is presented on the modified accrual
basis of accounting. The information in this schedule is presented on the modified accrual basis
of accounting. The information in this schedule is presented in accordance with the
requirements of Uniform Guidance, Audits of States, Local Governments, and Non-Profit
Organizations. Therefore, some amounts presented in this schedule may differ from amounts
presented in the preparation of, the general purpose financial statements. Special revenue
funds are used to account for resources restricted to, or designed for, specific purposes by a
grantor. Generally, unused balances are returned to the grantor at the close of the specific
project period.
The accounting and financial reporting treatment applied to Special Revenue funds is the
current financial resource measurement focus. With this measurement focus, only current
assets and current liabilities are generally included on the balance sheet. Operating statements
of these funds present increases and decreases in fund balance. The modified accrual basis of
accounting recognizes revenues in the accounting period in which they become measurable
and available, and expenditures in the accounting period in which the liability is incurred, except
for unmatured interest on long-term debt, which is recognized when matured, and certain
compensated absences, pension liability, other post-employment benefits, and claims, which
are recognized when the obligations are expected to be liquidated with expendable available
resources. Grant funds are considered to be earned as soon as all eligibility requirements
imposed by the provider are met and expenditures have been incurred, and, accordingly, when
such funds are received in advance, they are recorded as deferred revenue 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 project period extended 30 days beyond
the project period ending date.
The District does not use an indirect cost rate in federal programs.