Notes to SEFA
Title: BASIS OF PRESENTATION
Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such
expenditures are recognized following cost principles contained in the Uniform Guidance, wherein certain types
of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown (if any) shown
on the Schedule represent adjustments or credits made in the normal course of business to amounts reported
as expenditures in prior years. Pass-through entity identifying numbers are presented where available.
De Minimis Rate Used: N
Rate Explanation: Morenci
Area Schools has elected not to use the 10-percent de minimis indirect cost rate allowed under Uniform
Guidance.
Management has utilized the NexSys Cash Management System and the Grant Auditor report in preparing the
Schedule of Expenditures of Federal Awards. The district does not pass-through awards.
The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal award
activity of Morenci Area Schools under programs of the federal government for the year ended June 30, 2023.
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 selection of the operations of Morenci
Area Schools, it is not intended to and does not present the financial position or changes in net position of
Morenci Area Schools.
Title: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such
expenditures are recognized following cost principles contained in the Uniform Guidance, wherein certain types
of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown (if any) shown
on the Schedule represent adjustments or credits made in the normal course of business to amounts reported
as expenditures in prior years. Pass-through entity identifying numbers are presented where available.
De Minimis Rate Used: N
Rate Explanation: Morenci
Area Schools has elected not to use the 10-percent de minimis indirect cost rate allowed under Uniform
Guidance.
Management has utilized the NexSys Cash Management System and the Grant Auditor report in preparing the
Schedule of Expenditures of Federal Awards. The district does not pass-through awards.
Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such
expenditures are recognized following cost principles contained in the Uniform Guidance, wherein certain types
of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown (if any) shown
on the Schedule represent adjustments or credits made in the normal course of business to amounts reported
as expenditures in prior years. Pass-through entity identifying numbers are presented where available. Morenci
Area Schools has elected not to use the 10-percent de minimis indirect cost rate allowed under Uniform
Guidance.
Management has utilized the NexSys Cash Management System and the Grant Auditor report in preparing the
Schedule of Expenditures of Federal Awards. The district does not pass-through awards.
Title: RECONCILING WITH AUDITED FINANCIAL STATEMENTS
Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such
expenditures are recognized following cost principles contained in the Uniform Guidance, wherein certain types
of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown (if any) shown
on the Schedule represent adjustments or credits made in the normal course of business to amounts reported
as expenditures in prior years. Pass-through entity identifying numbers are presented where available.
De Minimis Rate Used: N
Rate Explanation: Morenci
Area Schools has elected not to use the 10-percent de minimis indirect cost rate allowed under Uniform
Guidance.
Management has utilized the NexSys Cash Management System and the Grant Auditor report in preparing the
Schedule of Expenditures of Federal Awards. The district does not pass-through awards.
Federal expenditures are reported as revenue in the following funds in the financial statements for the year
ending June 30, 2023:
General fund $ 968,235
Other nonmajor governmental funds 428,904
Total federal revenue in the fund financial statements 1,397,139
Less: Federal revenue not subject to Uniform Guidance (80,278)
Expenditures per schedule of expenditures of federal awards $ 1,316,861
Title: ADJUSTMENTS
Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such
expenditures are recognized following cost principles contained in the Uniform Guidance, wherein certain types
of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown (if any) shown
on the Schedule represent adjustments or credits made in the normal course of business to amounts reported
as expenditures in prior years. Pass-through entity identifying numbers are presented where available.
De Minimis Rate Used: N
Rate Explanation: Morenci
Area Schools has elected not to use the 10-percent de minimis indirect cost rate allowed under Uniform
Guidance.
Management has utilized the NexSys Cash Management System and the Grant Auditor report in preparing the
Schedule of Expenditures of Federal Awards. The district does not pass-through awards.
Adjustments were made for ALN 84.425D, pass-through grantor number 213722-2122 ($8,658) for prior year
federal expenditures incurred but not reported on the SEFA that were not drawn on since the grant was drawn
to its maximum approved grant award amount.