Audit 44430

Accounting Policies: Basis of PresentationThe accompanying Schedule of Expenditures of Federal Awards (Schedule) includes the federal activityof the Caddo Mills Independent School District and is presented on the modified accrual basis ofaccounting. Expenditures are recognized in the accounting period in which a fund liability occurs. Fundsare considered earned to the extent of expenditures made.The information in the Schedule is presented in accordance with the requirements of Title 2 U.S. Codeof Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and AuditRequirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selectedportion of the operations of the District, it is not intended to and does not present the financial positionor changes in net position of the District. Therefore, some amounts presented in this schedule maydiffer from amounts presented in or used in the preparation of the basic financial statements.B. Summary of Significant Accounting PoliciesThe 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 resources measurementfocus. All federal expenditures were accounted for in the General Fund and Special Revenue Fundswhich are governmental fund types. Such expenditures are recognized following the cost principlescontained in the Uniform Guidance, wherein certain types of expenditures are not allowed or are limitedas to reimbursement. No federal financial assistance has been provided to a subrecipient.Federal grants are considered to be earned to the extent of expenditures made under the provisions ofthe grant.C. Food DistributionNonmonetary assistance is reported in the Schedule at the fair market value of the commoditiesreceived and used. No provision has been made for amounts on hand on June 30, 2022. De Minimis Rate Used: N Rate Explanation: The District has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.