Notes to SEFA
Accounting Policies: For the Years Ended August 31, 2022 NOTE 1 STANDARD FINANCIAL ACCOUNTING SYSTEM For all federal programs, the Charter Holder used the net asset classes and codes specified by the TEA in the Special Supplement to Financial Accounting and Reporting, Nonprofit Charter School Chart of Accounts. Net assets with donor restrictions are used to account for resources restricted to specific purposes by a grantor. Federal and state financial assistance is generally accounted for in net assets with donor restriction codes. NOTE 2 BASIS OF ACCOUNTING The accompanying schedule of expenditures of federal awards (SEFA) includes the federal grant activity of the Charter Holder. The information in the SEFA 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 the SEFA may differ from amounts presented or used in the preparation of the basic financial statements. NOTE 3 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Expenditures reported on the SEFA are reported on the modified accrual basis of accounting. These expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the SEFA, if any, represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. NOTE 4 INDIRECT COST RATE The Charter Holder has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. NOTE 5 DONATED PERSONAL PROTECTIVE EQUIPMENT (UNAUDITED) During the emergency period of COVID-19, federal agencies and recipients of federal assistance funds donated personal protective equipment (PPE) to non-federal entities. In connection with that donation, the recipient must disclose the estimated value of the donated PPE, but such amounts are not included in the SEFA. The Charter Holder did not receive PPE donations during the reporting year.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.