Title: Note 1. Fund Types
Accounting Policies: Note 2. Accounting and Financial ReportingThe accounting and financial reporting treatment applied to a fund is determined by its measurement focus.The Governmental Funds are accounted for using a current financial resources measurement focus. Allfederal grant funds were accounted for in the Special Revenue Fund, which are Governmental Funds. Withthis measurement focus, only current assets and current liabilities generally are included on the balance sheet.Operating statements of these funds present increases (i.e., revenues and other financing sources) anddecreases (i.e., expenditures and other financing uses) in net current assets.The Schedule of Expenditures of Federal Awards was prepared on the modified accrual basis of accounting.The modified accrual basis of accounting is used for the Governmental Funds. This basis of accountingrecognizes revenues in the accounting period in which they become susceptible to accrual, i.e., bothmeasurable and available, and expenditures in the accounting period in which the fund liability is incurred, ifmeasurable, except for unmatured interest on long-term debt, which is recognized when due, and certaincompensated absences and claims and judgments, which are recognized when the obligations are expected tobe liquidated with expendable available financial resources.Federal grant funds are considered to be earned to the extent of expenditures made under the provisions of thegrant, and, accordingly, when such funds are received, they are recorded as deferred revenues until earned.The District has not elected to use the 10 percent de-minimis indirect cost rate.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate. See above note, last sentence.
The District utilizes the fund types specified in the Texas Education Agency Resource Guide.Special Revenue Fund used to account for resources restricted to, or designated for, specific purposes by a grantor. Federal and state awards generally are accounted for in a Special Revenue Fund. Generally, unused balances are returned to the grantor at the close of specified grant periods.
Title: Note 3. Period of Availability
Accounting Policies: Note 2. Accounting and Financial ReportingThe accounting and financial reporting treatment applied to a fund is determined by its measurement focus.The Governmental Funds are accounted for using a current financial resources measurement focus. Allfederal grant funds were accounted for in the Special Revenue Fund, which are Governmental Funds. Withthis measurement focus, only current assets and current liabilities generally are included on the balance sheet.Operating statements of these funds present increases (i.e., revenues and other financing sources) anddecreases (i.e., expenditures and other financing uses) in net current assets.The Schedule of Expenditures of Federal Awards was prepared on the modified accrual basis of accounting.The modified accrual basis of accounting is used for the Governmental Funds. This basis of accountingrecognizes revenues in the accounting period in which they become susceptible to accrual, i.e., bothmeasurable and available, and expenditures in the accounting period in which the fund liability is incurred, ifmeasurable, except for unmatured interest on long-term debt, which is recognized when due, and certaincompensated absences and claims and judgments, which are recognized when the obligations are expected tobe liquidated with expendable available financial resources.Federal grant funds are considered to be earned to the extent of expenditures made under the provisions of thegrant, and, accordingly, when such funds are received, they are recorded as deferred revenues until earned.The District has not elected to use the 10 percent de-minimis indirect cost rate.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate. See above note, last sentence.
The period of availability for federal grant funds for the purpose of liquidation of outstanding obligations made on or before the ending date of the federal project period extends 30 days beyond the federal project period ending date, in accordance with provisions in Section H: Period of Availability of Federal Funds, Part 3, OMB Compliance Supplement.
Title: Note 4. Contingent Liabilities
Accounting Policies: Note 2. Accounting and Financial ReportingThe accounting and financial reporting treatment applied to a fund is determined by its measurement focus.The Governmental Funds are accounted for using a current financial resources measurement focus. Allfederal grant funds were accounted for in the Special Revenue Fund, which are Governmental Funds. Withthis measurement focus, only current assets and current liabilities generally are included on the balance sheet.Operating statements of these funds present increases (i.e., revenues and other financing sources) anddecreases (i.e., expenditures and other financing uses) in net current assets.The Schedule of Expenditures of Federal Awards was prepared on the modified accrual basis of accounting.The modified accrual basis of accounting is used for the Governmental Funds. This basis of accountingrecognizes revenues in the accounting period in which they become susceptible to accrual, i.e., bothmeasurable and available, and expenditures in the accounting period in which the fund liability is incurred, ifmeasurable, except for unmatured interest on long-term debt, which is recognized when due, and certaincompensated absences and claims and judgments, which are recognized when the obligations are expected tobe liquidated with expendable available financial resources.Federal grant funds are considered to be earned to the extent of expenditures made under the provisions of thegrant, and, accordingly, when such funds are received, they are recorded as deferred revenues until earned.The District has not elected to use the 10 percent de-minimis indirect cost rate.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate. See above note, last sentence.
The District participates in numerous state and federal grant programs, which are governed by various rules and regulations of the grantor agencies. Costs charged to the respective grant programs are subject to audit and adjustments by the grantor agencies; therefore, to the extent that the District has not complied with rulesand regulations governing the grants, refund of any money received may be required and the collectability of any related receivable at June 30, 2022, may be impaired. In the opinion of the District, there are no significant contingent liabilities relating to compliance with the rules and regulations governing the respective grants; therefore, no provision has been recorded in the accompanying financial statements for suchcontingencies.
Title: Note 5. Title I, Part A Transferability
Accounting Policies: Note 2. Accounting and Financial ReportingThe accounting and financial reporting treatment applied to a fund is determined by its measurement focus.The Governmental Funds are accounted for using a current financial resources measurement focus. Allfederal grant funds were accounted for in the Special Revenue Fund, which are Governmental Funds. Withthis measurement focus, only current assets and current liabilities generally are included on the balance sheet.Operating statements of these funds present increases (i.e., revenues and other financing sources) anddecreases (i.e., expenditures and other financing uses) in net current assets.The Schedule of Expenditures of Federal Awards was prepared on the modified accrual basis of accounting.The modified accrual basis of accounting is used for the Governmental Funds. This basis of accountingrecognizes revenues in the accounting period in which they become susceptible to accrual, i.e., bothmeasurable and available, and expenditures in the accounting period in which the fund liability is incurred, ifmeasurable, except for unmatured interest on long-term debt, which is recognized when due, and certaincompensated absences and claims and judgments, which are recognized when the obligations are expected tobe liquidated with expendable available financial resources.Federal grant funds are considered to be earned to the extent of expenditures made under the provisions of thegrant, and, accordingly, when such funds are received, they are recorded as deferred revenues until earned.The District has not elected to use the 10 percent de-minimis indirect cost rate.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate. See above note, last sentence.
As described in the U.S. Department of Education Cross-Cutting Section (ALN 84.000), sections III.A.3 Activities Allowed or Unallowed - Transferability (SEAs and LEAs) and IV.3 Other Information - Transferability of the 2022 OMB Compliance Supplement, expenditures of funds should be included in the audit universe and total expenditures of the receiving program. For fiscal year 2021, the District transferred Title IV, Part A (ALN 84.424) expenditures to its Title I, Part A (ALN 84.010A) program as submitted to the Texas Education Agency in its consolidated application and as denoted on the Schedule of Expenditures of Federal Awards. As such, Title IV, Part A (ALN 84.424) expenditures were included as part of Title I, Part A (ALN 84.010).
Title: Note 6. Reconciliation to the Basic Financial Statements
Accounting Policies: Note 2. Accounting and Financial ReportingThe accounting and financial reporting treatment applied to a fund is determined by its measurement focus.The Governmental Funds are accounted for using a current financial resources measurement focus. Allfederal grant funds were accounted for in the Special Revenue Fund, which are Governmental Funds. Withthis measurement focus, only current assets and current liabilities generally are included on the balance sheet.Operating statements of these funds present increases (i.e., revenues and other financing sources) anddecreases (i.e., expenditures and other financing uses) in net current assets.The Schedule of Expenditures of Federal Awards was prepared on the modified accrual basis of accounting.The modified accrual basis of accounting is used for the Governmental Funds. This basis of accountingrecognizes revenues in the accounting period in which they become susceptible to accrual, i.e., bothmeasurable and available, and expenditures in the accounting period in which the fund liability is incurred, ifmeasurable, except for unmatured interest on long-term debt, which is recognized when due, and certaincompensated absences and claims and judgments, which are recognized when the obligations are expected tobe liquidated with expendable available financial resources.Federal grant funds are considered to be earned to the extent of expenditures made under the provisions of thegrant, and, accordingly, when such funds are received, they are recorded as deferred revenues until earned.The District has not elected to use the 10 percent de-minimis indirect cost rate.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate. See above note, last sentence.
The following is a reconciliation of expenditures of federal awards program per the Schedule of Expenditures of Federal Awards and federal revenues reported on Exhibit C-2 of the Districts Annual Comprehensive Financial Report: See note to SEFA for chart/table.