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 longterm
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.
Warren Independent School District has elected to not use an indirect cost rate for any Federal
program as allowed under Uniform Guidance.