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, 2025. 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, or cash flows of Bethlehem Area School District.
The accompanying Schedule of Expenditures of Federal Awards is presented on the modified accrual basis of accounting for all federal awards charged to governmental funds and on the accrual basis of accounting for all federal awards charged to proprietary funds, as contemplated by generally accepted accounting principles.
The District recognized 2.4% of its total general fund revenue in federal awards, 67.0% of its total food service fund revenue, and 1.6% of its capital project fund revenue.
The District charged indirect costs to certain federal programs in accordance with the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (2 CFR Part 200). For the fiscal year ended June 30, 2025, the District applied an approved negotiated indirect cost rate established with the Pennsylvania Department of Education (PDE). Indirect costs were charged in accordance with the approved rate agreement and applicable federal program requirements. Indirect costs were charged as follows: "See Notes to SEFA for Table/Chart"
(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 Grants were passed through the following entities in the totals below: "See Notes to SEFA for Table/Chart" (3.) The District received non-monetary assistance from the U.S. Department of Agriculture of $519,636 in the form of commodities. These commodities are valued at U.S.D.A.’s approximate costs. During the 2024-25 fiscal year, the District used $509,526 in commodities and established a year-end inventory of $11,428 at June 30, 2025. (4.) A deferral of $36,938 was reported on the 2023-24 Schedule of Expenditures of Federal Awards (SEFA) for the Promoting Safe and Stable Families Program. This amount was reported in error due to the misallocation of program receipts between the State and Federal portions of the grant. The $36,938 should have been reported as part of the State’s allocation and not the Federal’s, which resulted in the reporting of the deferral. Accordingly, the opening deferral reported on the 2024-25 SEFA has been corrected to reflect a balance of $0. (5.) 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 Notes to SEFA for Table/Chart"