Audit 298338

Accounting Policies: NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The Dunmore School District located in Dunmore, 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 accompanying financial statements comply with the provisions of GASB Statement No. 61, The Financial Reporting Entity: Omnibus, in that the financial statements include all organizations, activities and functions for which the School District is financially accountable. Financially accountability is defined as the appointment of a voting majority of a component unit’s board and either (1) the School District’s ability to impose its will over a component unit or (2) the possibility that the component unit will provide a financial benefit or impose a financial burden on the School District. In addition, component units can be organizations for which the nature and significance of their relationship with the School District are such that exclusion would cause the School District’s financial statements to be misleading. This report presents the activities of the Dunmore School District. Based upon the application of these criteria, the School District is not a component unit of another reporting entity. Currently, the School District does not have any potential component units that should be included in the School District’s reporting entity. B. BASIS OF ACCOUNTING This financial statement has been prepared on the modified 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. PROGRAM DISCLOSURES A.NCLB – TITLE I GRANT The objective of this program is to improve the teaching and learning of children who are at risk of not meeting challenging academic standards and who reside in areas with high concentrations of children from low-income families. B.NATIONAL SCHOOL LUNCH PROGRAMS AND FOOD DISTRIBUTION The objective of the National School Breakfast and the National School Lunch Programs are to: (1) assist states, through cash grants and food donations, in making breakfast and lunch available to school children, and (2) encourage the domestic consumption of agricultural commodities and other foods. The objective of the Food Distribution Program is to improve the diets of school children, needy persons in households on or near Indian reservations not participating in the Food Stamp Program and in charitable institutions, the elderly, and other individuals in need of food assistance, and to increase the market for domestically produced foods acquired under surplus removal or price support operations. C.INDIVIDUALS WITH DISABILITIES EDUCATION ACT The objective of the Individuals with Disabilities Education Act is to ensure that all children with disabilities have available to them a free appropriate public education that emphasizes special education and related services designed to meet their unique needs and prepare them for employment and independent living. D. TITLE II – IMPROVING TEACHER QUALITY The objective of the program is to provide funds to State educational agencies (SEAs), local educational agencies (LEAs), State agencies for higher education (SAHEs), and partnerships comprised of institutions of higher education (IHEs), high-need LEAs and other entities to increase the academic achievement of all students by helping schools and school districts to: (1) improve teacher and principal quality (including hiring teachers to reduce class size) and (2) ensure that all teachers are highly qualified. NO PRIOR FINDINGS NOTED. De Minimis Rate Used: N Rate Explanation: The Auditee did not use the de minimus cost rate.