Audit 55088

Accounting Policies: Basis of PresentationThe accompanying schedule of expenditures of federal awards includes the federal grant activity of ParisIndependent School District and is presented on the modified accrual basis of accounting. The informationin this schedule is presented in accordance with the requirements of Title 2 U.S. Code of FederalRegulations (CFR) Part 200 Uniform Administrative Requirements, Cost Principles, and AuditRequirements for Federal Awards. Therefore, some amounts presented in this schedule may differ fromamounts presented in, or used in the preparation of, the basic financial statements. Federal grants fundsare considered to be earned to the extent of expenditures made under the provisions of the grant andaccordingly when such funds are received, they are recorded as deferred revenues until earned.The Commodity Supplemental Food Program (CFDA 10.565) received like-kind goods. The monetary valueof these goods was $272,766 for the year ended June 30, 2022. This monetary value was reported on theschedule.The District participates in numerous state and federal grant programs governed by various rules andregulations of the grantor agencies. Expenditures are recognized following the cost principles contained inthe Uniform Guidance, wherein certain types of expenditures are not allowed or are limited as toreimbursement. Costs charged to the respective grant programs are subject to audit and adjustment by thegrantor agencies; therefore, to the extent that the District has not complied with the rules and regulationsgoverning the grants, if any, refunds of any money received may be required and the collectability of anyrelated receivable at June 30, 2022, may be impaired. Negative amounts shown, if any, representadjustments or credits made in the normal course of business to amounts reported as expenditures in prioryears. In the opinion of the District, there are no significant contingent liabilities relating to compliance withthe rules and regulations governing the respective grants; therefore, no provision has been recorded in theaccompanying basic financial statements for such contingency.Paris Independent School District has elected not to use the 10-percent de mini mis indirect cost rateallowed under the Uniform Guidance.Reconciliation of Federal AwardsThe following reconciles federal expenditures per the Schedule of Expenditures of Federal Awards (SEFA)to the federal revenue reported on Exhibit C-2:Federal expenditures per SEFA $11,691,194SHARS 426,642Federal revenue per Exhibit C-2 $12,117,836 De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.