Notes to SEFA
Accounting Policies: 1. For all Federal programs, the District uses the fund types specified in TexasEducation Agency's Financial Accountability System Resource Guide. SpecialRevenue Funds are used to account for resources restricted to, or designated for,specific purposes by a grantor. Federal and State financial assistance generally isaccounted for in a Special Revenue Fund.2. The accounting and financial reporting treatment applied to a fund is determined byits measurement focus. The Governmental Fund types and Expendable Trust Fundsare accounted for using a current financial resources measurement focus. AllFederal grant funds were accounted for in a Special Revenue Fund, which is aGovernmental Fund type. With this measurement focus, only current assets,current liabilities, and fund balance are included on the balance sheet. Operatingstatements of these funds present increases and decreases in net current assets.The modified accrual basis of accounting is used for the Governmental Fund types,the Expendable Trust Funds, and Agency Funds. This basis of accounting recognizesrevenues in the accounting period in which they become susceptible to accrual, i.e.,both measurable and available, and expenditures in the accounting period in whichthe fund liability is incurred, if measurable, except for unmatured interest onGeneral LongTerm Debt, which is recognized when due, and certain compensatedabsences and claims and judgments, which are recognized when the obligations areexpected to be liquidated with expendable available financial resources.Federal grant funds are considered to be earned to the extent of expenditures madeunder the provisions of the grant, and accordingly, when such funds are received,they are recorded as deferred revenues until earned.3. The period of availability for Federal grant funds for the purpose of liquidation ofoutstanding obligations made on or before the ending date of the federal projectperiod extended 30 days beyond the project period ending date, in accordance withprovisions in the Uniform Guidance.4. The CFDA number for commodity assistance is the CFDA number of the programunder which the USDA donated the commodities.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.