Title: Non-cash Federal Awards
Accounting Policies: Because the schedule of expenditures of federal awards presents only a selected portion of theactivities of the District, it is not intended to, and does not, present the financial position, orchanges in net position, of the District.? For all federal awards, the District uses the fund types specified in Texas Education Agency's FinancialAccountability System Resource Guide. Special revenue funds are used to account for resources restrictedto, or designated for, specific purposes by a grantor. Federal and state financial assistance is generallyaccounted for in the special revenue funds.? The accounting and financial reporting treatment applied to a fund is determined by its measurementfocus. The governmental fund types are accounted for using a current financial resources measurementfocus. All federal grant funds were accounted for in special revenue funds, which are governmental fundtypes.With this measurement focus, only current assets, current liabilities and fund balances are included on thebalance sheet. Operating statements of these funds present increases and decreases in net current assets.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 liabilityis incurred, if measurable, except for unmatured interest on long-term debt, which is recognized whendue, 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 funds are considered to be earned to the extent of expenditures made under the provisions ofthe grant, and, accordingly, when such funds are received, they are recorded as deferred revenues untilearned.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The total non-cash federal awards expended during the year ended August 31, 2022, was $48,335 all ofwhich received under the National School Lunch Program, FAL No. 10.555
Title: Reconciliation of Federal Revenues
Accounting Policies: Because the schedule of expenditures of federal awards presents only a selected portion of theactivities of the District, it is not intended to, and does not, present the financial position, orchanges in net position, of the District.? For all federal awards, the District uses the fund types specified in Texas Education Agency's FinancialAccountability System Resource Guide. Special revenue funds are used to account for resources restrictedto, or designated for, specific purposes by a grantor. Federal and state financial assistance is generallyaccounted for in the special revenue funds.? The accounting and financial reporting treatment applied to a fund is determined by its measurementfocus. The governmental fund types are accounted for using a current financial resources measurementfocus. All federal grant funds were accounted for in special revenue funds, which are governmental fundtypes.With this measurement focus, only current assets, current liabilities and fund balances are included on thebalance sheet. Operating statements of these funds present increases and decreases in net current assets.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 liabilityis incurred, if measurable, except for unmatured interest on long-term debt, which is recognized whendue, 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 funds are considered to be earned to the extent of expenditures made under the provisions ofthe grant, and, accordingly, when such funds are received, they are recorded as deferred revenues untilearned.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
Reconciliation of Federal Revenues:Total Expenditures of Federal Awards - Exhibit K-1 $ 2,134,085Plus: SHARS/Medicaid Reimbursements 241,782Total Federal Program Revenues - Exhibit C-3 $ 2,375,867-