Notes to SEFA
Title: Note 1: Basis of Presentation
Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are
recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not
allowable or are limited as to reimbursement. Pass-through grantor identifying numbers are presented where available.
De Minimis Rate Used: N
Rate Explanation: The Alaska Department of Education & Early Development (DEED) has been delegated the authority, by the U.S.
Department Education, to approve Restricted Federal Indirect Cost Rate Proposals pursuant to delegation agreement
number 2021-012, effective until June 30, 2023. The District received a restricted Federal indirect cost rate from DEED for
fiscal year 2023. As a result, the District elected not to use the 10-percent de minimus indirect cost rate allowed under the
Uniform Guidance.
The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal award activity of the
Fairbanks North Star Borough School District (District) under programs of the federal government for the year ended June
30, 2023. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of
Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal
Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the District, it is
not intended to and does not present the financial position, changes in net position or cash flows of the District.
Title: Note 4: U.S. Department of Agriculture (USDA) Food Entitlement
Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are
recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not
allowable or are limited as to reimbursement. Pass-through grantor identifying numbers are presented where available.
De Minimis Rate Used: N
Rate Explanation: The Alaska Department of Education & Early Development (DEED) has been delegated the authority, by the U.S.
Department Education, to approve Restricted Federal Indirect Cost Rate Proposals pursuant to delegation agreement
number 2021-012, effective until June 30, 2023. The District received a restricted Federal indirect cost rate from DEED for
fiscal year 2023. As a result, the District elected not to use the 10-percent de minimus indirect cost rate allowed under the
Uniform Guidance.
The USDA provides States with a USDA Foods entitlement, at a nominal cost, and a fresh fruit and vegetable entitlement,
at no cost, for use in preparing school lunches. The USDA utilizes the U.S. Department of Defense as a procurement
agent for the fresh fruit and vegetable entitlement program. Because governmental funds are uniquely concerned with
flows of financial resources, USDA food entitlements are recorded at cost rather than fair market value in governmental
funds. Food entitlements are considered expended when consumed in the school lunch program. However, the noncash
value of food entitlements received in fiscal year 2023 is listed as an expenditure on the schedule of expenditures of
federal awards.