Notes to SEFA
Title: Reconciliation of Accrued Revenue Amounts per the Schedule of Expenditures
Accounting Policies: Note A – Basis of Presentation
The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) includes the
federal award activity of Philadelphia Performing Arts Charter School (the “School”) 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 Part 200, Uniform Administrative Requirements, Cost Principles, and Audit
Requirements for Federal Awards (“Uniform Guidance”). Because the Schedule presents only a
selected portion of the operations of the School, it is not intended to and does not present the
balance sheet, revenues, expenditures, or changes in fund balances of governmental funds. The
financial activity for the aforementioned awards is reported in the School’s Statement of
Revenues, Expenditures, and Changes in Fund Balances – Governmental Funds.
Note B – Summary of Significant Accounting Policies
1. Expenditures reported on the Schedule are reported on the accrual basis of accounting.
Such expenditures are recognized following the cost principles contained in the Uniform
Guidance, wherein certain types of expenditures are not allowable or are limited as to
reimbursement.
De Minimis Rate Used: N
Rate Explanation: The School has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.
Federal subsidies receivable at June 30, 2023 and 2022 was $2,502,427 and $1,866,033. Included deferred revenue at June 30, 2023 and 2022 was $(325,637) and $(227,914). Due from local governments at June 30, 2023 and 2022 was $454,513 and $579,338. The total accrued revenue at June 30, 2023 and 2022 was $2,631,303 and $2,217,457.