Notes to SEFA
Title: BASIS OF PRESENTATION
Accounting Policies: Expenditures reported on the schedule are reported on the accrual basis of accounting. Suchexpenditures are recognized following the cost principles contained in the Uniform Guidance whereincertain types of expenditures are not allowable or are limited as to reimbursement. Negative amountsshown on the schedule represents adjustments or credits made in the normal course of business toamounts reported as expenditures in prior years. Pass-through entity identifying numbers are presentedwhere available.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The accompanying schedule of expenditures of federal awards includes the federal grant activity of theHazard Independent School District under the programs of the federal government for the year endedJune 30, 2021. The information in this schedule is presented in accordance with the requirements of Title2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, andAudit Requirements for Federal Awards, (Uniform Guidance). Because the schedule presents only aselected portion of the operations of the Hazard Independent School District, it is not intended to and doesnot present the financial position, changes in net position or cash flows of the District.
Title: FOOD DISTRIBUTION
Accounting Policies: Expenditures reported on the schedule are reported on the accrual basis of accounting. Suchexpenditures are recognized following the cost principles contained in the Uniform Guidance whereincertain types of expenditures are not allowable or are limited as to reimbursement. Negative amountsshown on the schedule represents adjustments or credits made in the normal course of business toamounts reported as expenditures in prior years. Pass-through entity identifying numbers are presentedwhere available.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
Nonmonetary assistance is reported in the schedule at the fair value of the commodities received anddisbursed. For the year ended June 30, 2021, the District received food commodities totaling $60,294.