Notes to SEFA
Accounting Policies: For all Federal programs, the District uses the fund types specified in Texas Education Agency'sFinancial Accountability System Resource Guide. Special revenue funds are used to account forresources restricted, or designated for, specific purposes by a grantor. Federal and state financialassistance generally is accounted for in a Special Revenue Fund.The accounting and financial reporting treatment applied to a fund is determined by its measurementfocus. The Governmental Fund types are accounted for using a current financial resourcesmeasurement focus. All Federal grant funds were accounted for in the General Fund or SpecialRevenue Fund, which are Governmental Fund types. With this measurement focus, only currentassets and current liabilities and the 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. This basis ofaccounting recognizes revenue in the accounting period in which they become susceptible to accrual,i.e., both measurable and available, and expenditures in the accounting period in which the fundliability is incurred, if measurable, except for unmatured interest on General Long-Term Debt, whichis recognized when due, and certain compensated absences and claims and judgments, which arerecognized when the obligations are expected to be liquidated with expendable available financialresources.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 deferredrevenue until earned.According to AAG-SLG Appendix D, Questions and Answers, most Medicaid arrangements betweenstates and providers (SHARS) are contracts for services and not Federal assistance, they should notappear on the Schedule of Expenditures of Federal Awards.The District charges indirect costs in accordance with a negotiated rate with the Texas EducationAgency and has not elected to use the 10% de minimis indirect cost rate as allowed by UniformGuidance.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.