Audit 8242

Title: BASIS OF PRESENTATION. Accounting Policies: SEE BASIS OF PRESENTATION NOTE ON ATTACHED NOTES SHEET De Minimis Rate Used: N Rate Explanation: the District’s federal award programs have been charged with indirect costs, based upon a rate established by New York State and the District has elected not to use the 10% deminimis indirect cost rate allowed under the Uniform Guidance applied to overall expenditures. There is no other indirect cost allocation plan in effect. The accompanying schedule of expenditures of federal awards presents the activity of federal award programs administered by the District, which is described in Note 1 to the District’s accompanying financial statements, using the modified accrual basis of accounting. Federal awards that are included in the schedule may be received directly from federal agencies, as well as federal awards that are passed through from other government agencies. The information 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). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the financial statements. Because the schedule of expenditures of federal awards presents only a selected portion of the operations of the District, it is not intended to and does not present the financial position, change in net assets, or cash flows of the District. Indirect costs may be included in the reported expenditures, to the extent that they are included in the federal financial reports used as the source for the data presented. Certain of the District’s federal award programs have been charged with indirect costs, based upon a rate established by New York State and the District has elected not to use the 10% deminimis indirect cost rate allowed under the Uniform Guidance applied to overall expenditures. There is no other indirect cost allocation plan in effect. Matching costs (the District’s share of certain program costs) are not included in the reported expenditures. The basis of accounting varies by federal program consistent with the underlying regulations pertaining to each program. The amounts reported as federal expenditures were obtained from the federal financial reports for the applicable program and periods. The amounts reported in these reports are prepared from records maintained for each program, which are reconciled with the District’s financial reporting system.

Title: NON-CASH ASSISTANCE Accounting Policies: SEE BASIS OF PRESENTATION NOTE ON ATTACHED NOTES SHEET De Minimis Rate Used: N Rate Explanation: the District’s federal award programs have been charged with indirect costs, based upon a rate established by New York State and the District has elected not to use the 10% deminimis indirect cost rate allowed under the Uniform Guidance applied to overall expenditures. There is no other indirect cost allocation plan in effect. The District is the recipient of a federal award program that does not result in cash receipts or disbursements. The District was granted $91,108 of commodities under the National School Lunch Program (Federal Assistance Listing Number 10.555).

Title: OTHER DISCLOSURES Accounting Policies: SEE BASIS OF PRESENTATION NOTE ON ATTACHED NOTES SHEET De Minimis Rate Used: N Rate Explanation: the District’s federal award programs have been charged with indirect costs, based upon a rate established by New York State and the District has elected not to use the 10% deminimis indirect cost rate allowed under the Uniform Guidance applied to overall expenditures. There is no other indirect cost allocation plan in effect. No insurance is carried specifically to cover equipment purchased with federal funds. Any equipment purchased with federal funds has only a nominal value, and is covered by the District’s casualty insurance policies. There were no loans or loan guarantees outstanding at year-end.