Notes to SEFA
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 thefederal award activity of East Penn School District under programs of the federal government for theyear ended June 30, 2022. The information in this Schedule is presented in accordance with therequirements of the Title 2 U.S. Code of Federal Regulations Part 200, Uniform AdministrativeRequirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance).Because the Schedule presents only a selected portion of the operations of East Penn SchoolDistrict, it is not intended to and does not present the financial position, changes in net assets, orcash flows of East Penn 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 7.1% of its total general fund revenue in federal awards, and 84.9% of its totalenterprise 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 award, passed through the Carbon-Lehigh I.U., under the U.S. Department ofEducation heading, is part of a consortium of participating school districts. In accordance withdirections from the Commonwealth of Pennsylvania, these awards are reported on the basicfinancial statements as local source revenue. 2. The federal award, passed through the Lancaster-Lebanon Intermediate Unit #13, under theU.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 arereported on the basic financial statements as local source revenue. 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 Transportation Access passed through the Carbon Lehigh I.U. is reflected as federal localsource revenue on the basic financial statements; however, pursuant to instructions from theCommonwealth of PA it is not reported as revenue on the Schedule of Federal Awards. 5. The District received non-monetary assistance from the U.S. Department of Agriculture of$238,081 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 $213,827 in commoditiesand established a year-end inventory of $46,117 at June 30, 2022. 6. 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 versusthe commodities received, which are recognized as revenue in the basic financial statements. 7. The Medical Access grant passed through the PA Department of Education is reflected asfederal source revenue on the basic financial statements; however, pursuant to instructionsfrom the Commonwealth of PA, it is not reported as revenue on the Schedule of FederalAwards. "See the Notes to the SEFA for chart/table"