Notes to SEFA
Accounting Policies: 1.SIGNIFICANT ACCOUNTING POLICIESA.Basis of PresentationThe 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 expenses 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 corporations financial statements in conformity with generally accepted accounting principles. The corporation has elected not to use the 10% de minimus rate for indirect costs.Because the schedule presents only a selected portion of the operations of the corporation, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the corporation.For all federal programs, the corporation used the net asset classes and codes specified by the Texas Education Agency in the Special Supplement to Financial Accounting and Reporting, Nonprofit Charter School Chart of Accounts. Net assets with donor restriction codes are used to account for resources restricted to or designated for specific purposes by a grantor. Federal and state financial assistance is accounted for in net assets with donor restriction codes.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 deferred revenues until earned.2.RECONCILIATION OF FEDERAL REVENUESFederal revenues expended in federal grant funds $2,882,004E-rate (31,129)Total federal revenues per Schedule of Expenditures ofFederal Awards $2,850,875
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.