Notes to SEFA
Accounting Policies: NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The Blue Ridge School District located in New Milford, Pennsylvania is a school district mandated by the Pennsylvania Department of Education. The District provides educational services to children in Grades K-12. A. REPORTING ENTITY The reporting entity has been defined in accordance with the criteria established in Statement No. 39 of the Governmental Accounting Standards Board (GASB), Determining Whether Organization are Component Units- an amendment of GASB No. 14, The Financial Reporting Entity. The specific criteria used is as follows: a) financial interdependency; b) selection of governing authority; c) designation of management; d) ability to significantly influence operations; e) accountability for fiscal matters; f) scope of public service and g) special financing relationships. As defined, there are no other related organizations which should be included in the financial statements. The reporting entity will consist solely of the accounts and funds of the District. B. BASIS OF ACCOUNTING This financial statement has been prepared on the modified accrual basis of accounting except for the National School Lunch Program which uses the full accrual method. C. INVENTORY OF MATERIALS, SUPPLIES AND EQUIPMENT Materials, supplies and equipment of all federal funds except the National School Lunch Programs Inventories are expended on a first-in, first-out basis as the foodstuffs and supplies are consumed in providing meals and services.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.