Notes to SEFA
Title: Note 3. Special Education Cooperative
Accounting Policies: Note 1. Summary of Significant Accounting PoliciesA. Basis of PresentationThe accompanying Schedule of Expenditures of Federal Awards (SEFA) includes the federalgrant activity of the School Corporation under programs of the federal government for theyears ended June 30, 2021 and 2022. The information in the SEFA is presented inaccordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200,Uniform Administrative Requirements, Cost Principles, and Audit Requirements for FederalAwards (Uniform Guidance). Because the SEFA presents only a select portion of theoperations of the School Corporation, it is not intended to and does not present the financialposition of the School Corporation.The Uniform Guidance requires an annual audit of nonfederal entities expending a totalamount of federal awards equal to or in excess of $750,000 in any fiscal year unless byconstitution or statute a less frequent audit is required. In accordance with Indiana Code(IC 5-11-1-25), audits of school corporations shall be conducted biennially. Such audits shallinclude both years within the biennial period.B. Other Significant Accounting PoliciesExpenditures reported on the SEFA are reported on the cash basis of accounting. Suchexpenditures are recognized following, as applicable, either the cost principles in OMBCircular A-87, Cost Principles for State, Local, and Indian Tribal Governments, or the costprinciples contained in the Uniform Guidance, wherein certain types of expenditures are notallowed or are limited as to reimbursement. When federal grants are received on areimbursement basis, the federal awards are considered expended when the reimbursementis received.
De Minimis Rate Used: N
Rate Explanation: Note 2. Indirect Cost RateThe School Corporation has elected not to use the 10 percent de minimis indirect cost rateallowed under the Uniform Guidance.
The School Corporation is a member of the Harrison County Exceptional Learners Cooperativeand serves as the fiscal agent. As a result, some of the activity for the Special Education Cluster(IDEA) that is presented as receipts and disbursements in the financial statement is not presentedon the SEFA for the School Corporation. This activity is reported on the SEFAs of the memberschool corporations as appropriate.