Notes to SEFA
Basis of presentation – The schedule of expenditures of federal awards (the schedule) 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 expenditures include allowable costs funded by federal awards. Allowable costs are subject to the cost principles of the Uniform Guidance and include costs that are recognized in Arrow Academy’s financial statements in conformity with generally accepted accounting principles. Arrow Academy uses its approved Texas Education Agency indirect cost rate for indirect costs and Arrow Academy does not have any subrecipients. Because the schedule presents only a selected portion of the operations of Arrow Academy, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Arrow Academy.
Food commodities are recognized as federal expenditures when distributed. Distributed food is reported in the schedule of expenditures of federal awards under the National School Lunch Program and is valued based on amounts reported to Arrow Academy by the Texas Department of Agriculture in the statements of commodities shipped at the time the items are received. These amounts are considered to be non-cash assistance to Arrow Academy. Arrow Academy received $23,168 of commodities during the year ended August 31, 2025, which is reported as non-cash assistance in the schedule of expenditures of federal awards.