Audit 42563

Accounting Policies: Basis of PresentationSummary of Significant Accounting PoliciesFor all Federal programs, the District uses the fund types specified in Texas Education Agency's FinancialAccountability System Resource Guide.? General Fund - is used to account for, among other things, resources related to the United States Departmentof Defense ROTC program and the United States Department of Education's Impact Aid.? Special Revenue Funds - are used to account for resources restricted to, or designated for, specific purposesby a grantor. Federal and state financial assistance generally is accounted for in a Special Revenue Fund.Generally, unused balances are returned to the grantor at the close of specified project periods.The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. TheGovernmental Fund types are accounted for using a current financial resources measurement focus. All Federal grantfunds were accounted for in a Special Revenue Fund or, in some instances, in the General Fund which areGovernmental Fund type funds.With this measurement focus, only current assets and current liabilities and the fund balance are included on thebalance sheet. Operating statements of these funds present increases and decreases in net current assets. The modifiedaccrual basis of accounting is used for the Governmental Fund types. This basis of accounting recognizes revenues inthe accounting period in which they become susceptible to accrual, i.e., both measurable and available, andexpenditures in the accounting period in which the fund liability is incurred, if measurable, except for unmaturedinterest on General Long-Term Debt, which is recognized when due, and certain compensated absences and claimsand judgments, which are recognized when the obligations are expected to be liquidated with expendable availablefinancial resources. Federal grant funds are considered to be earned to the extent of expenditures made under theprovisions of the grant, and, accordingly, when such funds are received, they are recorded as unearned revenues untilearned.The period of performance for federal grant funds for the purpose of liquidation of outstanding obligations made onor before the ending date of the federal project period extended 90 days beyond the federal project period endingdate, in accordance with provisions in Section H, Period of Performance of Federal Funds, 3 CFR Section200.343(b).Assistance Listing numbers for commodity assistance are the Assistance Listing numbers of the programs underwhich USDA donated the commodities.The District has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.A reconciliation from the Schedule of Expenditures of Federal Awards to the Statement of Revenues, Expenditures,and Changes in Fund Balance is as follows:Total Expenditures of Federal Awards $ 1,019,560Amounts not considered federal financial assistance:School Health and Related Services 101,655Total Federal Revenue as Reported on Statement ofRevenues, Expenditures, and Changes in Fund Balance $ 1,121,215 De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.