Audit 9911

Accounting Policies: NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The Wallenpaupack Area School District located in Hawley, Pennsylvania is a school district mandated by the Pennsylvania Department of Education. The District provides educational services to children in Grades K-12. A.REPORTING ENTITY The accompanying financial statements comply with the provisions of GASB Statement No. 61, The Financial Reporting Entity: Omnibus, in that the financial statements include all organizations, activities and functions for which the School District is financially accountable. Financially accountability is defined as the appointment of a voting majority of a component unit’s board and either (1) the School District’s ability to impose its will over a component unit or (2) the possibility that the component unity will provide a financial benefit or impose a financial burden on the School District. In addition, component units can be organizations for which the nature and significance of their relationship with the School District are such that exclusion would cause the School District’s financial statements to be misleading. This report presents the activities of the Wallenpaupack Area School District. Based upon the application of these criteria, the School District is not a component unity of another reporting entity. Currently, the School District does not have any potential component units that should be included in the School District’s reporting entity. B. BASIS OF ACCOUNTING This financial statement has been prepared on the modified basis of accounting except for the National School Lunch Program which uses the full accrual method. C. INVENTORY OF MATERIALS, SUPPLIES AND EQUIPMENT Materials, supplies and equipment of all federal funds except the National School Lunch Programs Inventories are expended on a first-in, first-out basis as the foodstuffs and supplies are consumed in providing meals and services. De Minimis Rate Used: N Rate Explanation: The Auditee did not use the de minimis cost rate.