Notes to SEFA
The accompanying schedule of expenditures of federal and state awards presents expenditures for all federal and state assistance awards that were in effect for the year ended August 31, 2025 for Draw Academy, Inc. (the “Academy”). The Academy’s reporting entity is described in Note 2 of the basic financial statements.
The accompanying schedule of expenditures of federal and state awards includes the federal and state grant activity of the Academy and is presented 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 Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. 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.
Expenditures reported on the schedule of expenditures of federal and state awards are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, Cost Principles for Non-Profit Organizations and the Uniform Grant Management Standards, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
For all federal and state programs, the Academy used the net asset classes and codes specified by the Texas Education Agency in the Special Supplement to Financial Accounting and Reporting, Non-Profit Charter Academy Chart of Accounts. Temporarily restricted net asset codes are used to account for resources restricted to or designated for specific purposes by the grantor. Federal and state financial assistance is generally accounted for in temporarily restricted net asset codes.
There were no loans or loan guarantees outstanding at year end. The Academy has elected not to use the 15 percent de minimis indirect cost rate allowed under the Uniform Guidance. The Academy did not disburse any federal or state awards to subrecipients for the year ended August 31, 2025.