Notes to SEFA
Accounting Policies: NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESThe Wallenpaupack Area School District located in Hawley, Pennsylvania is a school district mandated by thePennsylvania Department of Education. The District provides educational services to children in Grades K-12.A. REPORTING ENTITYThe accompanying financial statements comply with the provisions of GASB Statement No. 61, TheFinancial Reporting Entity: Omnibus, in that the financial statements include all organizations,activities and functions for which the School District is financially accountable. Financiallyaccountability is defined as the appointment of a voting majority of a component unit's board and either(I) the School District's ability to impose its will over a component unit or (2) the possibility that thecomponent unity will provide a financial benefit or impose a financial burden on the School District. Inaddition, component units can be organizations for which the nature and significance of theirrelationship with the School District are such that exclusion would cause the School District's financialstatements to be misleading. This report presents the activities of the Wallenpaupack Area SchoolDistrict. Based upon the application of these criteria, the School District is not a component unity ofanother reporting entity. Currently, the School District does not have any potential component unitsthat should be included in the School District's rep01ting entity.B. BASIS OF ACCOUNTINGThis financial statement has been prepared on the modified basis of accounting except for the NationalSchool Lunch Program which uses the full accrual method.C. INVENTORY OF MATERIALS, SUPPLIES AND EQUIPMENTMaterials, supplies and equipment of all federal funds except the National School Lunch ProgramsInventories are expended on a first-in, first-out basis as the foodstuffs and supplies are consumed inproviding meals and services.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.