Notes to SEFA
The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) includes the federal award activity of East Penn 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 East Penn School District, it is not intended to and does not present the financial position, changes in net assets, or cash flows of East Penn 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 1.7% of its total general fund revenue in federal awards, and 43.1% of its total enterprise fund revenue.
The District did not charge any indirect costs to any of their federal grants and programs during this fiscal year. As such, the District did not use the 10% de minimis cost rate.
(1.) The federal award, passed through the Carbon-Lehigh I.U., under the U.S. Department of Education heading, is 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 revenue. (2.) The Federal Grants were passed through the following entities in the totals below: “See the Notes to the SEFA for chart/table.” (3.) The District received non-monetary assistance from the U.S. Department of Agriculture of$225,133 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 $234,412 in commodities and established a year-end inventory of $52,732 at June 30, 2025. (4.) As allowed by federal regulations, the East Penn School District elected to transfer program funds. The District expended $78,742 from it’s Title IV, Part A Student Support and Academic Enrichment (84.424) on allowable activities of the Title II, Part A Supporting Effective Instruction (84.367). This amount is reflected in the expenditures of Title II, Part A Supporting Effective Instruction (84.367). (5.) The Transportation Access passed through the Carbon Lehigh I.U. is reflected as federal local 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 Federal Awards. (6.) The Medical Access grant passed through 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 Federal Awards. “See the Notes to the SEFA for chart/table.”