Audit 332177

Title: Reporting Entity Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards included the grant activity of the School District and is presented using the modified accrual basis of accounting, which is described in Note 1D to the District’s basic financial statements. De Minimis Rate Used: N Rate Explanation: The School District did not use the 10% de minimis indirect cost rate. The Neshaminy School District (the “District”) as the reporting entity for financial reportingpurposes is defined in Note 1B to the District’s basic financial statements. For purposes of preparing the Schedule of Expenditures of Federal Awards, the District’s reporting entity isthe same that was used for financial reporting.

Title: Risk-Based Audit Approach Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards included the grant activity of the School District and is presented using the modified accrual basis of accounting, which is described in Note 1D to the District’s basic financial statements. De Minimis Rate Used: N Rate Explanation: The School District did not use the 10% de minimis indirect cost rate. The 2024 threshold for determining Type A and Type B Programs is $750,000. The District had 4 Type A Programs. The following Type A programs were audited as major: Education Stabilization Fund – ALN #84.425 Child Nutrition Cluster – ALN 10.553 and 10.555 The amount expended under programs audited as major federal programs for the year ended June 30, 2024 totaled $7,407,371 or 67.5% of total federal awards expended.

Title: Medical Assistance Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards included the grant activity of the School District and is presented using the modified accrual basis of accounting, which is described in Note 1D to the District’s basic financial statements. De Minimis Rate Used: N Rate Explanation: The School District did not use the 10% de minimis indirect cost rate. Access reimbursement received under ALN #93.778, Revenue Code 8810 are classified as fee-for-service revenues and are not recognized as federal awards for the purpose of reporting on the Schedule of Expenditures of Federal Awards. Access reimbursement for administrative claiming portion under ALN 93.778, Code 8820 is classified as federal awards and is reported on the Schedule of Expenditures of Federal Awards.