Audit 343472

Accounting Policies: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The North Pocono School District (the District) located in Moscow, Pennsylvania, provides a full range of educational services appropriate to grade levels kindergarten through 12 to students living in Lackawanna and Wayne Counties. These include regular, advanced academic, and vocational education programs, and special education programs for gifted and handicapped children. The District has a nine-member elected school board and an appointed Superintendent and Business Manager who oversee the daily operations of the District. The accounting policies of the North Pocono School District conform with accounting principles generally accepted in the United States of America (GAAP) as applicable to governmental units. The Government Accounting Standards Board (GASB) is the accepted standard setting body for establishing governmental and financial reporting principles. The following is a summary of the District's significant accounting policies: 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 unity 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 North Pocono School District. Based upon the application of these criteria, the School District is not a component unity 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 PRESENTATION, FUND ACCOUNTING The accounts of the District are organized on the basis of funds or account groups, each of which constitutes a separate accounting entity. The operations of each fund are accounted for within a separate set of self-balancing accounts that comprise its assets, liabilities, deferred inflows of resources, fund balances, revenues and expenditures. Resources are allocated to and accounted for in individual funds based upon the purpose for which they are to be spent. Account groups are used to establish accounting control and accountability for the District's General Fixed Assets and General Long-Term Obligations. The following fund types and account groups are used by the District: GOVERNMENTAL FUND TYPES Governmental Funds are those through which most governmental functions of the District are financed. The acquisition, use and balances of the District's expendable financial resources and the related liabilities are accounted for through governmental funds. The following are the District's governmental fund types: GENERAL FUND The General Fund accounts for the general operations of the District and all financial transactions not properly accounted for in another fund. DEBT SERVICE FUND The Debt Service Fund accounts for the accumulation of resources, sources for and the payment of, general long-term debt principal and interest. CAPITAL PROJECTS FUND The Capital Projects Fund accounts is used to account for debt proceeds and other resources restricted, committed, or assigned to expenditure for capital outlays, including the acquisition or construction of capital facilities and other capital assets. PROPRIETARY FUND TYPES Proprietary Fund Types account for operations that are financed and operated in a manner similar to private business enterprises. FOOD SERVICE FUND The Food Service Fund accounts for all financial resources associated with the operations of the cafeterias. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.