Audit 45240

Accounting Policies: Basis of PresentationThe accompanying Schedule of Expenditures of Federal Awards (Schedule) includes the federal activity of the HarmonyIndependent School District and is presented on the modified accrual basis of accounting. Expenditures are recognized inthe accounting period in which a fund liability occurs. Funds are 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. Code of FederalRegulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for FederalAwards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the District, it isnot intended to and does not present the financial position or changes in net position of the District. Therefore, someamounts presented in this schedule may differ from amounts presented in or used in the preparation of the basic financialstatements.B. Summary of Significant Accounting PoliciesThe accounting and financial reporting treatment applied to a fund is determined by its measurement focus. Thegovernmental fund types are accounted for using a current financial resources measurement focus. All federalexpenditures were accounted for in the General Fund and Special Revenue Funds which are governmental fund types.Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain typesof expenditures are not allowed or are limited as to reimbursement. No federal financial assistance has been provided toa subrecipient.Federal grants are considered to be earned to the extent of expenditures made under the provisions of the grant.C. Food DistributionNonmonetary assistance is reported in the Schedule at the fair market value of the commodities received and used. Noprovision has been made for amounts on hand on August 31, 2022.D. Indirect CostThe District has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. 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.