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 expenditures 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 as expenses in the Academy’s financial statements in conformity with generally accepted accounting principles. The Academy has elected not to use the 10% de minimus rate or its approved Texas Education Agency indirect cost rate for indirect costs and does not have any subrecipients. Because the schedule presents only a selected portion of the operations of the Academy, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the 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 the 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 the Academy. The Academy received $74,976 of commodities during the year ended June 30, 2025, which is reported as non-cash assistance in the schedule of expenditures of federal awards.