Notes to SEFA
Accounting Policies: For all Federal programs, the District uses the fund types specified in the Texas Education AgencysFinancial Accountability System Resource Guide. Special revenue funds are used to account forresources restricted to, or designated for, specific purposes by a grantor. Federal and state financialassistance generally is accounted for in a Special Revenue Fund. Generally, unused balances are returnedto the grantor at the close of specified project periods.The accounting and financial reporting treatment applied to a fund is determined by its measurement focus.The Governmental Fund types are accounted for using a current financial resources measurement focus.All Federal grant funds were accounted for in a Special Revenue Fund or, in some instances, in the GeneralFund which are governmental fund type funds.With this measurement focus, only current assets and current liabilities and the fund balance are includedon the Balance Sheet. Operating statements of these funds present increases and decreases in net currentassets. The modified accrual basis of accounting is used for the governmental fund types. This basis ofaccounting recognizes revenues in the accounting period in which they become susceptible to accrual, i.e.,both measurable and available, and expenditures in the accounting period in which the fund liability isincurred, if measurable, except for unmatured interest on General Long-Term Debt, which is recognizedwhen due, and certain compensated absences and claims and judgments, which are recognized when theobligations are expected to be liquidated with expendable available financial resources. Federal grant fundsare considered to be earned to the extent of expenditures made under the provisions of the grant, and,accordingly, when such funds are received, they are recorded as unearned revenues until earned.The District must submit to the pass-through entity, no later than 90 calendar days (or an earlier date asagreed upon by the pass-through entity and the District) after the end date of the period of performance, allfinancial, performance, and other reports as required by the terms and conditions of the Federal award. TheFederal awarding agency or pass-through entity may approve extensions when requested and justified bythe non-federal entity, as applicable (2 CFR 200.344(a)).Unless the Federal awarding agency or pass-through entity authorizes an extension, a non-federal entitymust liquidate all financial obligations incurred under the Federal award no later than 120 calendar daysafter the end date of the performance period as specified in the terms and conditions of the Federal award (2CFR 200.344(b)).CFDA numbers for commodity assistance are the CFDA numbers of the programs under which USDAdonated the commodities.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.