Notes to SEFA
Accounting Policies: 1. The Schedule of Expenditures of Federal Awards is presented using the modified cash basis of accounting, which is described in Note 1 to the District's financial statements. 2. Commodities received and expended are valued by the Food Service Section of the Department of Elementary and Secondary Education. 3. The District did not provide funds to subrecipients in the current year. 4. The District elected not to use the 10% de minimis indirect cost rate. 5. Loan Programs - The District participates in the Federal Direct Student Loan Program, which provides federal loans directly to the students rather than through private lending institutions. The District is responsible only for the origination of the loan (e.g., determining students eligibility and disbursing loan proceeds to the borrower). The Direct Loan Servicer is then responsible for the overall servicing and collection of the loan. Accordingly, these loans are not included in the District's financial statements. 6. The amount reported on the Schedule of Expenditures of Federal Awards for the loan program represents the total value of the loans awarded and paid to the District's students during the year ended June 30, 2022.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.