Audit 50127

Accounting Policies: Note 1: SCOPE OF AUDIT PURSUANT TO THE UNIFORM GUIDANCEThe Hoover City Board of Education (the Board), is an agency of the State of Alabama. All significant operations of the Board are included in the scope of the Uniform Guidance.The U. S. Department of Education has been designated as the Board's cognizant agency for the "Single-Audit.Note 2: FISCAL PERIOD AUDITEDSingle Audit testing procedures were performed for program transactions occurring during the fiscal year ended September 30, 2022.Note 3: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESBasis of PresentationThe Schedule of Expenditures of Federal Awards has been prepared on the modified accrual basis of accounting. Federal grant revenues are recorded for financial reporting purposes when the Board has met the qualifications for the respective grants. Several programs are funded jointly by State appropriations and Federal funds. Encumbrances for purchase orders and contracts are not recorded as expenditures because the liability has not been incurred for goods received or services rendered; however, these encumbrances (if any) are reserved in the fund balances of the governmental funds. Costs incurred in programs partially funded by Federal grants are applied against grant funds to the extent of revenue available when they properly apply to the grant, except as described below.Accrued and Deferred ReimbursementVarious reimbursement procedures are used for Federal awards received by the Board. Consequently, timing differences between expenditures and program reimbursements can exist at the beginning and end of the year. Accrued balances at year-end represent an excess of expenditures over cash reimbursements received to date. Generally, accrued or deferred balances caused by differences in the timing of cash reimbursements and expenditures will be reversed in the remaining grant period.Indirect CostThe Board has elected not to use the 10% de minimis indirect cost rate during the fiscal year ended September 30, 2022.Federally Funded Insurance and Federally Funded LoansThe Board has no federally funded insurance and no federally funded loans or loan guarantees for the fiscal year ended September 30, 2022. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.