Notes to SEFA
Title: Reconciliation
Accounting Policies: For all Federal programs, the District uses the fund types specified in Texas Education Agency's
Financial Accountability System Resource Guide. Special revenue funds are used to account for
resources restricted, or designated for, specific purposes by a grantor. Federal and state financial
assistance generally is accounted for in a Special Revenue Fund.
2. The accounting and financial reporting treatment applied to a fund is determined by its measurement
focus. The Governmental Fund types are accounted for using a current financial resources
measurement focus. All Federal grant funds were accounted for in the General Fund or Special
Revenue Fund, which are Governmental Fund types. With this measurement focus, only current
assets and current liabilities and the fund balance are included on the balance 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 of
accounting recognizes revenue 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
liability is incurred, if measurable, except for unmatured interest on General Long-Term Debt, which
is recognized when due, and certain compensated absences and claims and judgments, which are
recognized when the obligations 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 of the grant, and accordingly, when such funds are received, they are recorded as deferred
revenue until earned.
3. According to AAG-SLG Appendix D, Questions and Answers, most Medicaid arrangements between
states and providers (SHARS) are contracts for services and not Federal assistance, they should not
appear on the Schedule of Expenditures of Federal Awards.
De Minimis Rate Used: N
Rate Explanation: The District charges indirect costs in accordance with a negotiated rate with the Texas Education
Agency and has not elected to use the 10% de minimis indirect cost rate as allowed by Uniform
Guidance.
Reconciliation of SEFA to financial statements