Notes to SEFA
Title: Reporting Entity
Accounting Policies: The accompanying schedule of expenditures of federal awards has been prepared on the basis of accounting practices prescribed or permitted by the Manual of Accounting and Related Financial Procedures for Pennsylvania School Systems, issued by the Pennsylvania Department of Education. These practices, as they apply to the School District, are in conformity with U.S. generally accepted accounting principles.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
Derry Area School District is the reporting entity for financial reporting purposes as defined in Note 1 to the School District's financial statements.
Title: Non-Monetary Assistance
Accounting Policies: The accompanying schedule of expenditures of federal awards has been prepared on the basis of accounting practices prescribed or permitted by the Manual of Accounting and Related Financial Procedures for Pennsylvania School Systems, issued by the Pennsylvania Department of Education. These practices, as they apply to the School District, are in conformity with U.S. generally accepted accounting principles.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
Non-monetary assistance was received from the U.S. Department of Agriculture of $105,829 in the form of commodities. These commodities are valued at USDA's approximate costs. During the year ended June 30, 2022, the District used $94,235 in commodities and established a year-end inventory of $43,683. The amount recognized as revenue of $94,235 represents the commodities used, verses the commodities received, which are recognized as revenue in the basic financial statements.
Title: Child Nutrition Cluster
Accounting Policies: The accompanying schedule of expenditures of federal awards has been prepared on the basis of accounting practices prescribed or permitted by the Manual of Accounting and Related Financial Procedures for Pennsylvania School Systems, issued by the Pennsylvania Department of Education. These practices, as they apply to the School District, are in conformity with U.S. generally accepted accounting principles.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
For the year ended June 30, 2022, the total expenditures for the Child Nutrition Cluster were $1,327,405. Please refer to Note 5 of the Single Audit in the reporting package for details.