Audit 344914

Accounting Policies: NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The Bear Creek Community Charter School (the School) located in Bear Creek Township, Pennsylvania, operates a charter school under an approved charter received from the Wilkes-Barre Area School District, acting pursuant to authority conferred under the Public School Code of 1949, as amended by Act 22 of 1997, the Charter School Law, 24 P.S. sections 17-1701-A et seq. REPORTING ENTITY Consistent with guidance contained in Statement No. 61 of the Governmental Accounting Standards Board (GASB), The Financial Reporting Entity: Omnibus- an amendment of GASB Statement No. 14, the criteria used by the School to evaluate the possible inclusion of related entities (Authorities, Boards, Councils, etc.) within its reporting entity are financial accountability and the nature and significance of the relationship. In determining financial accountability in a given case, the School reviews the applicability of the following criteria: The School is financially accountable for: • Organizations that make up the School's legal entity. • Legally separate organizations if School officials appoint a majority of the organization's governing body and the School is able to impose its will on the organization or if there is a potential for the organization to provide specific financial benefits to, or impose specific burdens on, the School as defined below. Impose Its Will - If the School can significantly influence the programs, projects or activities of, or the level of services performed or provided by the organization. Financial Benefit or Burden - If the School (1) is entitled to the organization's resources or (2) is legally obligated or has otherwise assumed the obligation to finance the deficits of, or provide support to the organization or (3) is obligated in some manner for the debt of the organization. • Organizations that are fiscally dependent on the School. Fiscal dependency is established if the organization is unable to adopt its own budget, levy taxes or set rates or charges, or issue bonded debt without the approval of the School. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.