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Qualitative Aspects nfthe Entity's Significant Accounting Practices Significant Accounting Policies Management has the responsibility to select and use appropriate accounting policies. Asummary of the significant accounting policies adopted by the District is included in Note 1 to the financial statements. There has been no initial selection of accounting policies and no changes in significant accounting policies ortheir application during 2020. No matters have come to our attention that would require us, under professional standards, toinform you about (1)the methods usedtoeocountforeignifioantunusua| transactions and (2) the effect ofsignificant accounting policies in controversial or emerging areas for which there is alack ofauthoritative guidance orconsensus. Significant Accounting Estimates Accounting estimates are anintegral part ofthe financial statements prepared bymanagement and are based on management's current judgments. Those judgments are normally based on knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ markedly from management's current judgments. The most sensitive accounting estimates affecting the financial statements are: Management's estimate ofdepreciation expense is based onthe useful lives ofacquired assets. We evaluated the key factors and assumptions used to develop depreciation expense in determining that it is reasonable in relation to the financial statements taken as avvho|o. The estimate of the liability for other post -employment benefits (and related deferred amounts) is based onactuarial reports provided byindependent actuaries. VVe evaluated the key factors and assumptions used to develop the estimate in determining that it is reasonable in relation tothe financial statements taken amawhole. The estimate ofthe net pension liability (and related deferred amounts) is based on actuarial reports provided by independent actuaries. We evaluated the key factors and assumptions used to develop the estimate in determining that it is reasonable in relation to the statements taken as avvhole. Financial Statement Disclosures Certain financial statement disclosures involve significant judgment and are particularly sensitive because of their significance to financial statement users. The most sensitive disclosures affecting the District's financial statements relate to: The disclosure of capital aeaeta, net. in Note 5 to the notes to the basic financial statements is based on historical information which could differ from actual useful lives ofeach capitalized item. The disclosure of net pension liability (and related deferred amounts) in Note 7 to the notes to the basic financial statements is based on actuarial assumptions. Actual future liabilities may vary from disclosed estimates. The disclosure of the District's other post -employment benefits payable (and related deferred amounts) in Note 8 to the notes to the basic financial statements is based on actuarial assumptions which could differ from actual costs. The disclosure related to the possible effects of the Covid-18pandernicinNote 1O. K