Notes to SEFA
Title: NOTE C FOOD DISTRIBUTION
Accounting Policies: NOTE A BASIS OF PRESENTATION - The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of the Marshall County School District under programs of the federal government for the year ended June 30, 2022. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Marshall County School District, it is not intended to and does not present the financial position or changes in financial position of the Marshall County School District. NOTE B SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - (1)Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, either the cost principles contained in OMB Circular A-87 Cost Principles for State, Local, and Indian Tribal Governments (codified in 2 CFR Part 225), or the cost principles contained in the Uniform Guidance, wherein certain types of expenditures may or may not be allowable or may be limited as to reimbursement.(2)The Marshall County School District did not elect to use the 10% de minimus indirect cost rate as allowed under the Uniform Guidance.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
Nonmonetary assistance is reported in the schedule at the fair value of the commodities disbursed. Per USDA instructions, commodities expended are recorded at an amount equal to commodities received and the inventory at June 30, 2022 is combined with purchased food inventory. The pass-through number for the commodities program was not available for the Schedule of Expenditures of Federal Awards.
Title: NOTE D RECONCILIATION OF SCHEDULE TO FINANCIAL STATEMENTS
Accounting Policies: NOTE A BASIS OF PRESENTATION - The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of the Marshall County School District under programs of the federal government for the year ended June 30, 2022. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Marshall County School District, it is not intended to and does not present the financial position or changes in financial position of the Marshall County School District. NOTE B SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - (1)Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, either the cost principles contained in OMB Circular A-87 Cost Principles for State, Local, and Indian Tribal Governments (codified in 2 CFR Part 225), or the cost principles contained in the Uniform Guidance, wherein certain types of expenditures may or may not be allowable or may be limited as to reimbursement.(2)The Marshall County School District did not elect to use the 10% de minimus indirect cost rate as allowed under the Uniform Guidance.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The following is a reconcilement of the total in the schedule of expenditures of federal awards to the total federal revenue included in the statement of revenues, expenditures and changes in fund balances governmental funds on page 14 of the audit report and in the statement of revenues, expenses, and changes in net position proprietary funds on page 17 of the audit report:Total intergovernmental indirect federal from page 14$6,685,367Total intergovernmental direct federal from page 14 158,838Total federal grants from page 17 3,374,765Donated commodities from page 17 228,527Federal reimbursement coded as a negative expenditure 957Food service revenues coded to state funds per KDE instructions 5,986Less: Amount of federal funds received as services, such as Medicaid/COVID (234,685)Total on page 73 $ 10,219,755