Title: 1. Government of the School District
Accounting Policies: Information contained in the Schedule of Expenditures of Federal Awards (SEFA) is derived from the School District’s accounting systems. For reporting purposes, the School District adheres to the significant accounting policies that are in conformance with generally accepted accounting principles (GAAP) for local governmental units as prescribed by the Governmental Accounting Standards Board. Program expenditures recorded in the SEFA are presented on the modified accrual basis of accounting
De Minimis Rate Used: N
Rate Explanation: The amount expended includes amounts claimed as indirect cost recovery using an approved indirect cost rate percent calculated by the Pennsylvania Department of Education or as per the funding agencies approved budget.
The School District of Philadelphia (the “School District”) is a separate and independent home rule school district of the first class established by the Education Supplement to the Philadelphia Home Rule Charter (the “Charter”) in December 1965. It is the largest school district in the Commonwealth of Pennsylvania (the “Commonwealth”), serving over 196,200 students, including Charter Schools. The School District is the tenth largest in the United States in enrollment and employs more than 19,700 full-time professional and non- professional persons. The boundaries of the School District are coterminous with the boundaries of the City of Philadelphia (the “City”).
The School District is a political subdivision of the Commonwealth created to assist in the administration of the General Assembly’s duties under the Constitution of the Commonwealth to “provide for the maintenance and support of a thorough and efficient system of public education to serve the needs of the Commonwealth”. Although the School District is an independent legal entity, it is considered to be a component unit of the City of Philadelphia for reporting purposes and is included in the City’s Annual Comprehensive Financial Report.
Local governance by a Board of Education (Board) consisting of nine members appointed by the Mayor of the City of Philadelphia began on July 1, 2018. The board is responsible for the School District's overall operation, management, and educational programs, including all budgetary and financial matters presented herein. The duties of the Board generally include, but are not limited to, the formulation of educational policy, the adoption of an annual budget, the development of a comprehensive capital improvement budget and program, and the incurrence of indebtedness. The Superintendent of Schools reports to the Board. Tony B. Watlington, Sr. ED.D. assumed leadership of the District for the Fiscal Year 2023 reporting period. In addition, a new Chief Financial Officer, Michael Herbstman was appointed in February 2023 when the previous Chief Financial Officer, Uri Z. Monson was appointed as the Budget Secretary for the new Governor of Pennsylvania. There were new School Board leaders for Fiscal Year 2023 with Reginald L. Streator, J.D., appointed President, and Mallory Fix-Lopez as Vice President.
The School District also serves as the agent for the Intermediate Unit No. 26, an entity established by the Commonwealth to provide special education, special education transportation, and related management services.
Title: 2. Organization and Scope
Accounting Policies: Information contained in the Schedule of Expenditures of Federal Awards (SEFA) is derived from the School District’s accounting systems. For reporting purposes, the School District adheres to the significant accounting policies that are in conformance with generally accepted accounting principles (GAAP) for local governmental units as prescribed by the Governmental Accounting Standards Board. Program expenditures recorded in the SEFA are presented on the modified accrual basis of accounting
De Minimis Rate Used: N
Rate Explanation: The amount expended includes amounts claimed as indirect cost recovery using an approved indirect cost rate percent calculated by the Pennsylvania Department of Education or as per the funding agencies approved budget.
For the fiscal year ending June 30, 2023, the School District of Philadelphia is presenting a Single Audit Report on expenditures of federal awards. This report is issued 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). The U.S. Department of Health and Human Services, National External Audit Review Center has been designated the organization-wide cognizant agency for the School District of Philadelphia’s single audit.
Title: 3. Major Programs
Accounting Policies: Information contained in the Schedule of Expenditures of Federal Awards (SEFA) is derived from the School District’s accounting systems. For reporting purposes, the School District adheres to the significant accounting policies that are in conformance with generally accepted accounting principles (GAAP) for local governmental units as prescribed by the Governmental Accounting Standards Board. Program expenditures recorded in the SEFA are presented on the modified accrual basis of accounting
De Minimis Rate Used: N
Rate Explanation: The amount expended includes amounts claimed as indirect cost recovery using an approved indirect cost rate percent calculated by the Pennsylvania Department of Education or as per the funding agencies approved budget.
Major federal programs are identified in the Summary of Auditor’s Results section of the Schedule of Findings and Questioned Costs.
Title: 4. Schedule of Expenditures of Federal Awards
Accounting Policies: Information contained in the Schedule of Expenditures of Federal Awards (SEFA) is derived from the School District’s accounting systems. For reporting purposes, the School District adheres to the significant accounting policies that are in conformance with generally accepted accounting principles (GAAP) for local governmental units as prescribed by the Governmental Accounting Standards Board. Program expenditures recorded in the SEFA are presented on the modified accrual basis of accounting
De Minimis Rate Used: N
Rate Explanation: The amount expended includes amounts claimed as indirect cost recovery using an approved indirect cost rate percent calculated by the Pennsylvania Department of Education or as per the funding agencies approved budget.
Information contained in the Schedule of Expenditures of Federal Awards (SEFA) is derived from the School District’s accounting systems. For reporting purposes, the School District adheres to the significant accounting policies that are in conformance with generally accepted accounting principles (GAAP) for local governmental units as prescribed by the Governmental Accounting Standards Board. Program expenditures recorded in the SEFA are presented on the modified accrual basis of accounting. The accompanying SEFA includes the federal grant activity of the School District under federal financial assistance programs for the year ended June 30, 2023. The information in this schedule is presented in accordance with the requirements of the Uniform Guidance. Because the schedule presents only a selected portion of the operations of the School District, it is not intended to present the financial position or changes in net position. Federal programs considered active during the year ended June 30, 2023, are reflected in the SEFA. An active federal program is defined as a federal program that incurred expenditures (adjustments) 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.
Accrued and Unearned Grant Revenue — various worksheet schedules are used for the federal awards received by the School District. Consequently, timing differences between the recognition of revenues and related cash receipts can exist at the beginning and end of the fiscal year. Accrued grant revenue balances represent the excess of revenue recognized over cash received to date. Unearned grant revenue balances represent the excess of cash received over revenue recognized to date.
Title: 5. Schedule of Expenditures of Federal Awards – National School Lunch Program – AL #10.555
Accounting Policies: Information contained in the Schedule of Expenditures of Federal Awards (SEFA) is derived from the School District’s accounting systems. For reporting purposes, the School District adheres to the significant accounting policies that are in conformance with generally accepted accounting principles (GAAP) for local governmental units as prescribed by the Governmental Accounting Standards Board. Program expenditures recorded in the SEFA are presented on the modified accrual basis of accounting
De Minimis Rate Used: N
Rate Explanation: The amount expended includes amounts claimed as indirect cost recovery using an approved indirect cost rate percent calculated by the Pennsylvania Department of Education or as per the funding agencies approved budget.
Information contained in the Schedule of Expenditures of Federal Awards (SEFA) for AL #10.555 – National School Lunch Program – includes Non-Cash Assistance pertaining to food commodities distributed by the United States Department of Agriculture (USDA). Commodities are identified with the programs under which USDA donated the commodities.
Title: 6. Indirect Cost Rate
Accounting Policies: Information contained in the Schedule of Expenditures of Federal Awards (SEFA) is derived from the School District’s accounting systems. For reporting purposes, the School District adheres to the significant accounting policies that are in conformance with generally accepted accounting principles (GAAP) for local governmental units as prescribed by the Governmental Accounting Standards Board. Program expenditures recorded in the SEFA are presented on the modified accrual basis of accounting
De Minimis Rate Used: N
Rate Explanation: The amount expended includes amounts claimed as indirect cost recovery using an approved indirect cost rate percent calculated by the Pennsylvania Department of Education or as per the funding agencies approved budget.
The amount expended includes amounts claimed as indirect cost recovery using an approved indirect cost rate percent calculated by the Pennsylvania Department of Education or as per the funding agency’s approved budget. The School District has not elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
Title: 7. COVID 19 FEMA Grant – AL # 97.036
Accounting Policies: Information contained in the Schedule of Expenditures of Federal Awards (SEFA) is derived from the School District’s accounting systems. For reporting purposes, the School District adheres to the significant accounting policies that are in conformance with generally accepted accounting principles (GAAP) for local governmental units as prescribed by the Governmental Accounting Standards Board. Program expenditures recorded in the SEFA are presented on the modified accrual basis of accounting
De Minimis Rate Used: N
Rate Explanation: The amount expended includes amounts claimed as indirect cost recovery using an approved indirect cost rate percent calculated by the Pennsylvania Department of Education or as per the funding agencies approved budget.
Expenditures related to the COVID 19 FEMA Grant (AL 97.036) that occurred in Fiscal Year 2023 are $1,105,107.89. The grant amount approved in Fiscal Year 2023 are included in this SEFA.