Notes to SEFA
Title: Note 2 - Basis of Presentation
Accounting Policies: The District accounts for all awards under federal programs in the General and Special Revenue Funds in accordance with theTexas Education Agency's Financial Accountability System Resource Guide. These programs are accounted for using a currentfinancial resources measurement focus. With this measurement focus, only current assets and current liabilities generally areincluded on the balance sheet. Operating statements of these funds present increases (i.e. revenues and other financingsources) and decreases (i.e. expenditures and other financing uses) in net current assets.Expenditures reported on the Schedule of Expenditures of Federal Awards are reported on the modified accrual basis ofaccounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, whereincertain types of expenditures are not allowable or are limited as to reimbursement. The District has not elected to use the10percent de minimis indirect cost rate as allowed under the Uniform Guidance.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. Generally, unused balancesare returned to the grantor at the close of specified project periods.All federal grants are subject to review by the grantor agencies. Any expenditures identified by the grantor agencies asdisallowed could require reimbursement to the grantor agency from the Districts general fund.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate. See paragraph two, last sentence in above note.
The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of the District under programs of the federal government for the year ended June 30, 2022. The information in this schedule is presented in accordance with the requirements of the Office of Management and Budget (OMB) Uniform Guidance. Because the schedule presents only a selected portion of the operations of the District, it is not intended to and does not present the financial position, changes in net position or cash flows of the District.
Title: Note 3 - Reconciliation to Basic Financial Statements
Accounting Policies: The District accounts for all awards under federal programs in the General and Special Revenue Funds in accordance with theTexas Education Agency's Financial Accountability System Resource Guide. These programs are accounted for using a currentfinancial resources measurement focus. With this measurement focus, only current assets and current liabilities generally areincluded on the balance sheet. Operating statements of these funds present increases (i.e. revenues and other financingsources) and decreases (i.e. expenditures and other financing uses) in net current assets.Expenditures reported on the Schedule of Expenditures of Federal Awards are reported on the modified accrual basis ofaccounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, whereincertain types of expenditures are not allowable or are limited as to reimbursement. The District has not elected to use the10percent de minimis indirect cost rate as allowed under the Uniform Guidance.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. Generally, unused balancesare returned to the grantor at the close of specified project periods.All federal grants are subject to review by the grantor agencies. Any expenditures identified by the grantor agencies asdisallowed could require reimbursement to the grantor agency from the Districts general fund.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate. See paragraph two, last sentence in above note.
The following is a reconciliation of expenditures of federal awards program per the Schedule of Expenditures of Federal Awards (SEFA) and expenditures reported on the Statement of Revenues, Expenditures and Changes in Fund Balance Governmental Funds: See notes to SEFA for table/chart.
Title: Note 4 - General Fund Expenditures
Accounting Policies: The District accounts for all awards under federal programs in the General and Special Revenue Funds in accordance with theTexas Education Agency's Financial Accountability System Resource Guide. These programs are accounted for using a currentfinancial resources measurement focus. With this measurement focus, only current assets and current liabilities generally areincluded on the balance sheet. Operating statements of these funds present increases (i.e. revenues and other financingsources) and decreases (i.e. expenditures and other financing uses) in net current assets.Expenditures reported on the Schedule of Expenditures of Federal Awards are reported on the modified accrual basis ofaccounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, whereincertain types of expenditures are not allowable or are limited as to reimbursement. The District has not elected to use the10percent de minimis indirect cost rate as allowed under the Uniform Guidance.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. Generally, unused balancesare returned to the grantor at the close of specified project periods.All federal grants are subject to review by the grantor agencies. Any expenditures identified by the grantor agencies asdisallowed could require reimbursement to the grantor agency from the Districts general fund.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate. See paragraph two, last sentence in above note.
Federal awards reported in the general fund are summarized as follows: See notes to SEFA for chart/table.