Notes to SEFA
Basis of presentation – The schedule of expenditures of federal awards is prepared on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of Title 2 U. S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Federal expenses include allowable expenses funded by federal grants. Allowable costs are subject to the cost principles of the Uniform Guidance and include costs that are recognized in Royal’s financial statements in conformity with generally accepted accounting principles. Royal has elected not to use the 10% de minimus rate, but has elected to use a rate of 4.314% for indirect costs, as approved by the Texas Education Agency. Royal does not have any subrecipients. Because the schedule presents only a selected portion of the operations of Royal, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Royal.