Notes to SEFA
Accounting Policies: NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The Lackawanna Trail School District located in Factoryville, Pennsylvania is a school
district mandated by the Pennsylvania Department of Education. The District provides educational services to children in Grades K-12. A. REPORTING ENTITY
The accompanying financial statements comply with the provisions of GASB Statement No. 61, The Financial Repmiing 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 Lackawanna Trail 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 ACCOUNTING This financial statement has been prepared on the modified basis of accounting except for the National School Lunch Program which uses the full accrnal method.
C. INVENTORY OF MATERIALS, SUPPLIES AND EQUIPMENT Materials, supplies and equipment of all federal funds except the National School Lunch Programs Inventories are expended on a first-in, first-out basis as the foodstuffs and supplies are consumed in providing meals and services.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimus cost rate