Title: Basis of Presentation
Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards is presented on the modified accrualbasis of accounting for all federal awards charged to governmental funds and on the accrual basis ofaccounting for all federal awards charged to proprietary funds, as contemplated by generally acceptedaccounting principles.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal award activity of Bethlehem Area School District under programs of the federal government for the year ended June 30, 2022. The information in this Schedule is presented in accordance with the requirements of the Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of Bethlehem Area School District, it is not intended to and does not present the financial position, changes in net assets, orcash flows of Bethlehem Area School District.
Title: Organization and Scope
Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards is presented on the modified accrualbasis of accounting for all federal awards charged to governmental funds and on the accrual basis ofaccounting for all federal awards charged to proprietary funds, as contemplated by generally acceptedaccounting principles.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The District recognized 5.7% of its total general fund revenue in federal awards, 90.3% of its total food service fund revenue, and 100% of its capital project fund revenue.
Title: Program Disclosure Footnotes
Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards is presented on the modified accrualbasis of accounting for all federal awards charged to governmental funds and on the accrual basis ofaccounting for all federal awards charged to proprietary funds, as contemplated by generally acceptedaccounting principles.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
1. The federal awards passed through the Colonial I.U. #20 under the U.S. Department of Education heading, are part of a consortium of participating school districts. In accordance with directions from the Commonwealth of Pennsylvania, these awards are reported on the basic financial statements as local source revenues. 2. The federal awards passed through the Lancaster-Lebanon I.U. #13 under the U.S. Department of Education heading, are part of a consortium of participating school districts. However, the District is not contracted as part of the participating school districts of the Lancaster-Lebanon I.U #13, but merely received a special award in the form of a grant for Liberty High School. In accordance with directions from the Commonwealth ofPennsylvania, these awards are reported on the basic financial statements as local source revenues. 3. The Federal Grants were passed through the following entities in the totals below: "See the Notes to the SEFA for chart/table 4". The District received non-monetary assistance from the U.S. Department of Agriculture of$440,401 in the form of commodities. These commodities are valued at U.S.D.A.sapproximate costs. During the 2021-22 fiscal year, the District used $445,267 incommodities and established a year-end inventory of $5,284 at June 30, 2022. 5. The amount recognized as revenue in the Schedule of Expenditures of Federal Awards,under the U.S. Department of Agriculture heading, represents the commodities used,versus the commodities received, which are recognized as revenue in the basic financial statements. 6. Of the $10,745,224 of expenditures reported for the ESSER II grant, $49,179 were incurred in the prior fiscal year. 7. Of the $8,114,760 of expenditures reported for the ARP-ESSER grant, $798,570 were incurred in the prior fiscal year. 8. The Medical Access grant passed though the PA Department of Education is reflected as federal source revenue on the basic financial statements; however, pursuant to instructions from the Commonwealth of PA, it is not reported as revenue on the Schedule of Expenditures of Federal Awards. "See the Notes to the SEFA for chart/table"