The accompanying schedule of expenditures of federal awards (the Schedule) includes the
federal award activity of New Waverly Independent School District under programs of the
federal government for the year ended August 31, 2025. The information in this 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). Because the Schedule presents only a selected portion of the
operations of New Waverly Independent School District, it is not intended to and does not
present the financial position, changes in net assets, or cash flows of New Waverly Independent
School District.
For all federal programs, the District uses the fund types specified in Texas Education Agency's
Financial Accountability System Resource Guide. Special revenue funds are used to account for
resources restricted to, or designated for, specific purposes by a grantor. Federal and state
financial assistance generally is accounted for in a Special Revenue Fund.
The accounting and financial reporting treatment applied to a fund is determined by its
measurement focus. The governmental fund types are accounted for using a current financial
resources measurement focus. All federal grant funds were accounted for in a Special Revenue
Fund which is a governmental fund type. With this measurement focus, only current assets and
current liabilities and the fund balance are included on the balance sheet. Operating statements
of these funds present increases and decreases in net current assets.
The modified accrual basis of accounting is used for the governmental fund types, and agency
funds. The basis of accounting recognizes revenues in the accounting period in which they
become susceptible to accrual, i.e., both measurable and available, and expenditures in the
accounting period in which the fund liability is incurred, if measurable, except for unmatured
interest on general long-term debt, which is recognized when due, and certain compensated
absences and claims and judgments, which are recognized when the obligations are expected
to be liquidated with expendable available financial resources.
Federal grant funds are considered to be earned to the extent of expenditures made under the
provisions of the grant, and, accordingly, when such funds are received, they are recorded as
unearned revenues 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 federal project period extended 30 days
beyond the federal project period ending date, in accordance with provisions in Section H,
Period of Availability of Federal Funds, Part 3 Uniform Guidance Compliance Statement -
Provisional 6/97.
New Waverly Independent School District has not elected to use the 10% de minimis indirect
cost rate as allowed under Uniform Guidance.