Notes to SEFA
Accounting Policies: The 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. All
federal grant funds are accounted for in the Special Revenue Fund, a component of the governmental
funds. With this 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) and decreases (i.e., expenditures and other financing uses) in net current assets. The modifiedaccrual
basis of accounting is used for the governmental funds. This basis of accounting recognizes
revenues in the accounting period in which they become susceptible to accrual (measurable and available)
and expenditures in the accounting period in which the fund liability is incurred, except that principal and
interest on general long-term debt are recognized when due. Federal grant funds are considered to be
earned when all eligibility requirements have been met. Any excess of revenues or expenditures is
recorded as unearned revenues or accounts receivable, respectively.
The disbursement of funds received under federal grant programs generally requires compliance with
terms and conditions specified in the grant agreements and is subject to audit by the grantor agencies. Any
disallowed claims resulting from such audits could become a liability of the General Fund. In the opinion
of management, such disallowed claims, if any, will not have a material effect on any of the financial
statements of the individual fund types or on the overall financial position of the District at August 31,
2023.
De Minimis Rate Used: N
Rate Explanation: The District has elected not to use the 10-percent de minimis indirect cost rate as allowed under the
Uniform Guidance.