Notes to SEFA
Title: Note 3 - Classification of Revenues
Accounting Policies: The schedule of expenditures of federal and selected state awards is presented using the accrual basis of accounting, which conform to generally accepted governmental accounting principles. Expenditures are recognized in the accounting period in which the liability is
incurred, if measurable. Revenues designated for payment of specific Intermediate Unit expenditures are recognized when the related expenditures are incurred. Any excess of revenues or expenditures at the fiscal year end is recorded as a liability or receivable, respectively.
De Minimis Rate Used: N
Rate Explanation: The expenditures in the accompanying schedule of expenditures of federal and selected state awards include an allocation of indirect costs. The Intermediate Unit has a negotiated indirect cost rate of 8.00% with the Pennsylvania Department of Education that is used to charge indirect costs to its federal programs, therefore, the Intermediate Unit does not utilize the 10% de minimis indirect cost rate.
Federal revenues are recorded in the fund-level financial statements as follows:
General fund - federal sources $ 30,962,365
Reconciling items:
State sources included in SEFA 10,074,891
Total expenditures of feneral and selected state awards $ 41,037,256