Acton-Boxborough Regional School District Notes to Basic Financial Statements Year Ended June 30, 2024
NOTE 13 – COMMITMENTS AND CONTINGENCIES The District participates in a number of federal award programs. Although the grant programs have been audited in accordance with the provisions of the Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, these programs are still subject to financial and compliance audits. The amount, if any, of expenditures which may be disallowed by the granting agencies cannot be determined at this time, although it is expected such amounts, if any, to be immaterial. Various legal actions and claims are pending. Litigation is subject to many uncertainties, and the outcome of individual litigated matters is not always predictable. Although the amount of liability, if any, cannot be ascertained, management believes any resulting liability should not materially affect the financial position at June 30, 2024. The general fund had various commitments for goods and services related to encumbrances totaling $776,065.
NOTE 14 –CHANGE IN FUND CLASSIFICATION
During the fiscal year ended June 30, 2024, the District reviewed its fund classifications and determined that the federal and state grants fund and the community education fund, previously reported as a major funds, no longer meets the criteria for major fund reporting according to the Governmental Accounting Standards Board (GASB) Statement No. 34, Basic Financial Statements—and Management’s Discussion and Analysis—for State and Local Governments. The federal and state grants fund and the community education fund have been reclassified as nonmajor funds for the fiscal year ended June 30, 2024. This reclassification is based on the funds financial activity, which no longer meets the quantitative thresholds established for major fund reporting. The decision to reclassify was made to provide more accurate and relevant financial information to users of the financial statements. The effects of this reclassification are reflected in the accompanying financial statements for the fiscal year ended June 30, 2024. The reclassification did not have any impact on the total net position or the change in net position of the District.
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