Notes to SEFA
Title: Note 2 NonCash Federal Assistance
Accounting Policies: Note 1 Basis of Presentation of Schedule of Expenditures of Federal Awards The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of the Hobbs Municipal School District #33 and is presented on the modified accrual basis of accounting. The information in the 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). Therefore, some amounts presented in, or used in the preparation of the governmental fund financial statements may not be consistent with amounts used in the Schedule of Expenditures of Federal Awards.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate, see note 3.
The District receives USDA Commodities for use in sponsoring the National School Lunch and Breakfast programs. The value of commodities received for the year ended June 30, 2022 was $261,690 and is reported in the Schedule of Expenditures of Federal Awards under the Department of Agriculture Commodities program, CFDA number 10.555.
Title: Note 3 10% de Minimums Indirect Cost Rate
Accounting Policies: Note 1 Basis of Presentation of Schedule of Expenditures of Federal Awards The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of the Hobbs Municipal School District #33 and is presented on the modified accrual basis of accounting. The information in the 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). Therefore, some amounts presented in, or used in the preparation of the governmental fund financial statements may not be consistent with amounts used in the Schedule of Expenditures of Federal Awards.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate, see note 3.
The District did not elect to use the allowed 10% de minimums indirect cost rate.
Title: Note 4 Loans
Accounting Policies: Note 1 Basis of Presentation of Schedule of Expenditures of Federal Awards The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of the Hobbs Municipal School District #33 and is presented on the modified accrual basis of accounting. The information in the 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). Therefore, some amounts presented in, or used in the preparation of the governmental fund financial statements may not be consistent with amounts used in the Schedule of Expenditures of Federal Awards.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate, see note 3.
The District did not expend federal awards related to loans or loan guarantees during the year.