Notes to SEFA
Accounting Policies: NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The Northeastern Educational Intermediate Unit (the “NEIU”) located in Archbald, Pennsylvania, was created as an educational service agency through the Commonwealth of Pennsylvania Act 102 of 1970 to help local schools and equalize educational opportunities for students. The NEIU provides diverse services to its twenty member school districts as well as non-public and vocational schools in Lackawanna, Susquehanna, and Wayne counties. The NEIU is governed by a board of directors that includes a member appointed from each of the School Boards of each member district. 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 Organizations are Component Units-an amendment of GASB Statement 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 NEIU. B. BASIS OF ACCOUNTING This financial statement has been prepared on the modified accrual basis of accounting. C.PASS THROUGH FUNDING The NEIU’s Special Education Grants to States, the Special Education Preschool Grants and the Race to the Top programs are passed through to various subrecipients, which primarily consist of the NEIU’s member districts. NO PRIOR FINDINGS NOTED
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimus cost rate