Title: NOTE 1 SCOPE OF AUDIT PURSUANT TO OMB UNIFORM GRANT GUIDANCE
Accounting Policies: Basis of presentation
The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) includes the federal grant activity of the District
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 the Office of Management and Budget (OMB) Uniform Grant Guidance. Because the Schedule
presents only a selected portion of the operations of the District, it is not intended to and does not present the financial position and
changes in net position of the District. All federal programs considered active during the year ended June 30, 2023, are reflected on
the Schedule. An active federal program is defined as a federal program for which there were receipts or disbursements of funds or
accrued (deferred) grant revenue adjustments during the fiscal year or a federal program considered as not completed or closed out
at the beginning of the fiscal year. The Schedule is prepared using the accrual basis of accounting. Grant revenues are recorded for
financial reporting purposes when the District has met the qualifications for the respective grant. Grant revenues for the Food
Donation Program are based upon commodities received, at amounts per standard price listing, published quarterly by the United
States Department of Agriculture (the “USDA”). In addition, there is no federal insurance in effect during the year and loan or loan
guarantee outstanding at year end.
Accrued and deferred reimbursements
Various reimbursement procedures are used for Federal awards received by the District. Consequently, timing differences between
expenditures and program reimbursements can exist at the beginning and end of the year. Accrued balances at year end represent
an excess of reimbursable expenditures over receipts to date. Deferred balance at year-end represent an excess of cash receipts over
reimbursable expenditure to date. Generally, accrued or deferred balances covered by differences in the timing of cash receipts and
expenditures will be reversed in the remaining grant period.
De Minimis Rate Used: N
Rate Explanation: There District has not elected to use the 10% de minimis indirect cost. The District uses 3.24% indirect cost rate as determined by
New Mexico Public Education Department.
All federal grant operations of Moriarty-Edgewood School District No. 8 (the “District”) are included in the scope of the Office of Management and Budget (“OMB”) Uniform Grant Guidance audit (the “Single Audit”). The Single Audit was performed in accordance with the provisions of the OMB Circular Compliance Supplement (Revised May 2023 the “Compliance Supplement”). Compliance testing of all requirements are described in the Compliance Supplement, was performed for the grants programs noted below. These programs represent all federal award programs and other grants with fiscal year 2023 cash and non-cash expenditures to ensure coverage of at least 20% (LOW risk auditee) of federally granted funds. Actual coverage is approximately 52% of total cash and non-cash federal award program expenditures. Total cash expenditures were in the amount of $4,937,414 and all non-cash expenditures amounted to $114,427. MAJOR FEDERAL PROGRAM ASSISTANCE NO. EXPENDITURES
COVID: CARES Act, CRRSA, ARP Act 84.425 D, U, & W $ 1 ,204,698
Child Nutrition Cluster 10.553 & 10.555 1,453,899
Total $ 2 ,658,597
The District had two federal programs considered to be a High-Risk Type A program for the year ended June 30, 2023.
Basis of presentation
The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) includes the federal grant activity of the District
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 the Office of Management and Budget (OMB) Uniform Grant Guidance. Because the Schedule
presents only a selected portion of the operations of the District, it is not intended to and does not present the financial position and
changes in net position of the District. All federal programs considered active during the year ended June 30, 2023, are reflected on
the Schedule. An active federal program is defined as a federal program for which there were receipts or disbursements of funds or
accrued (deferred) grant revenue adjustments during the fiscal year or a federal program considered as not completed or closed out at
the beginning of the fiscal year. The Schedule is prepared using the accrual basis of accounting. Grant revenues are recorded for
financial reporting purposes when the District has met the qualifications for the respective grant. Grant revenues for the Food
Donation Program are based upon commodities received, at amounts per standard price listing, published quarterly by the United
States Department of Agriculture (the “USDA”). In addition, there is no federal insurance in effect during the year and loan or loan
guarantee outstanding at year end.
Accrued and deferred reimbursements
Various reimbursement procedures are used for Federal awards received by the District. Consequently, timing differences between
expenditures and program reimbursements can exist at the beginning and end of the year. Accrued balances at year end represent an
excess of reimbursable expenditures over receipts to date. Deferred balance at year-end represent an excess of cash receipts over
reimbursable expenditure to date. Generally, accrued or deferred balances covered by differences in the timing of cash receipts and
expenditures will be reversed in the remaining grant period.
The U.S. Department of Education is the District’s oversight agency for single audit.
Title: NOTE 2 INDIRECT COSTS
Accounting Policies: Basis of presentation
The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) includes the federal grant activity of the District
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 the Office of Management and Budget (OMB) Uniform Grant Guidance. Because the Schedule
presents only a selected portion of the operations of the District, it is not intended to and does not present the financial position and
changes in net position of the District. All federal programs considered active during the year ended June 30, 2023, are reflected on
the Schedule. An active federal program is defined as a federal program for which there were receipts or disbursements of funds or
accrued (deferred) grant revenue adjustments during the fiscal year or a federal program considered as not completed or closed out
at the beginning of the fiscal year. The Schedule is prepared using the accrual basis of accounting. Grant revenues are recorded for
financial reporting purposes when the District has met the qualifications for the respective grant. Grant revenues for the Food
Donation Program are based upon commodities received, at amounts per standard price listing, published quarterly by the United
States Department of Agriculture (the “USDA”). In addition, there is no federal insurance in effect during the year and loan or loan
guarantee outstanding at year end.
Accrued and deferred reimbursements
Various reimbursement procedures are used for Federal awards received by the District. Consequently, timing differences between
expenditures and program reimbursements can exist at the beginning and end of the year. Accrued balances at year end represent
an excess of reimbursable expenditures over receipts to date. Deferred balance at year-end represent an excess of cash receipts over
reimbursable expenditure to date. Generally, accrued or deferred balances covered by differences in the timing of cash receipts and
expenditures will be reversed in the remaining grant period.
De Minimis Rate Used: N
Rate Explanation: There District has not elected to use the 10% de minimis indirect cost. The District uses 3.24% indirect cost rate as determined by
New Mexico Public Education Department.
There District has not elected to use the 10% de minimis indirect cost. The District uses 3.99% indirect cost rate as determined by
New Mexico Public Education Department.
Title: NOTE 3 RECONCILIATION OF FEDERAL AWARDS TO EXPENDITURE OF FEDERAL AWARDS
Accounting Policies: Basis of presentation
The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) includes the federal grant activity of the District
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 the Office of Management and Budget (OMB) Uniform Grant Guidance. Because the Schedule
presents only a selected portion of the operations of the District, it is not intended to and does not present the financial position and
changes in net position of the District. All federal programs considered active during the year ended June 30, 2023, are reflected on
the Schedule. An active federal program is defined as a federal program for which there were receipts or disbursements of funds or
accrued (deferred) grant revenue adjustments during the fiscal year or a federal program considered as not completed or closed out
at the beginning of the fiscal year. The Schedule is prepared using the accrual basis of accounting. Grant revenues are recorded for
financial reporting purposes when the District has met the qualifications for the respective grant. Grant revenues for the Food
Donation Program are based upon commodities received, at amounts per standard price listing, published quarterly by the United
States Department of Agriculture (the “USDA”). In addition, there is no federal insurance in effect during the year and loan or loan
guarantee outstanding at year end.
Accrued and deferred reimbursements
Various reimbursement procedures are used for Federal awards received by the District. Consequently, timing differences between
expenditures and program reimbursements can exist at the beginning and end of the year. Accrued balances at year end represent
an excess of reimbursable expenditures over receipts to date. Deferred balance at year-end represent an excess of cash receipts over
reimbursable expenditure to date. Generally, accrued or deferred balances covered by differences in the timing of cash receipts and
expenditures will be reversed in the remaining grant period.
De Minimis Rate Used: N
Rate Explanation: There District has not elected to use the 10% de minimis indirect cost. The District uses 3.24% indirect cost rate as determined by
New Mexico Public Education Department.
The differences between the federal awards received (Intergovernmental sources – federal) during the year ended June 30, 2023 and
the federal awards expended during the year are as follows:
BALANCE
Intergovernmental - federal sources $ 5 ,903,954
Exempt federal resouces (E-Rate) ( 116,711)
Indirect costs from federal programs (106,029)
Reimburement of prior year expenditures (45,852)
Unexpended federal sources from current year (53,960)
Unavailable federal reimbursements 5 ,531
Revenues received as vendor (535,092)
Total Expenditures of Federal Awards $ 5,051,841