Title: Basis of Presentation
Accounting Policies: Expenditures reported on the Schedule of Federal Expenditures are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance. Where in certain types of expenditures are not allowable or are limited as a reimbursement. Cash received is recorded on a cash basis. Revenues are recognized when qualifying expenditures have been incurred and all grant requirements have been met. Expenditures on this schedule reconcile with amounts reported in the financial statements and the financial reports submitted to the Michigan Department of Education. Management has utilized the MDE NexSys Grant Auditors Report (GAR) in preparing the Schedule of Expenditures of Federal Awards. The amounts reported on the Recipient Entitlement Balance Report, or PAL Report, agree with this schedule for USDA donated food commodities and are reported in the Cash Receipts column. Expenditures include spoilage or pilferage.
De Minimis Rate Used: N
Rate Explanation: Hale Area Schools did not elect to use a flat de minimis rate of 10% of modified total direct costs for their indirect cost rate.
The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Hale Area Schools under programs of the federal government for the year ended June 30, 2023. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of Hale Area Schools, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Hale Area Schools.
Title: Reconciliation to the Michigan Department of Education (MDE) NexSys Grant Section Auditors Report (GAR):
Accounting Policies: Expenditures reported on the Schedule of Federal Expenditures are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance. Where in certain types of expenditures are not allowable or are limited as a reimbursement. Cash received is recorded on a cash basis. Revenues are recognized when qualifying expenditures have been incurred and all grant requirements have been met. Expenditures on this schedule reconcile with amounts reported in the financial statements and the financial reports submitted to the Michigan Department of Education. Management has utilized the MDE NexSys Grant Auditors Report (GAR) in preparing the Schedule of Expenditures of Federal Awards. The amounts reported on the Recipient Entitlement Balance Report, or PAL Report, agree with this schedule for USDA donated food commodities and are reported in the Cash Receipts column. Expenditures include spoilage or pilferage.
De Minimis Rate Used: N
Rate Explanation: Hale Area Schools did not elect to use a flat de minimis rate of 10% of modified total direct costs for their indirect cost rate.
Total Current Year Receipts per the MDE NexSys Grant Section Auditors Report 2,194,283. Addition of receipts not passed through the Michigan Department of Education and not included in the NexSys System: Food Distribution for National Lunch Program: 55030 Entitlement Commodities 21,627, 55030 Bonus Commodities 451, Schools and Roads Grant Funds - 2023 20,133, Medical Assistance Program Title XIX: Medicaid Outreach Claims 2023 510, Plus receipts included in the NexSys System at June 30, 2022 that were not received by the District until the current fiscal year-end: Fresh Fruit and Vegetable Program 220950 2021-2022 5,754, Less receipts included in the NexSys System at June 30, 2023 that were not received by the District until after year-end: National School Breakfast Program 231970 2022-2023 (13,702), National School Lunch Program 231960 2022-2023 (35,768), Total Current Year Receipts on the Schedule of Expenditures of Federal Awards 2,193,288.
Title: Reconciliation to Financial Statements
Accounting Policies: Expenditures reported on the Schedule of Federal Expenditures are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance. Where in certain types of expenditures are not allowable or are limited as a reimbursement. Cash received is recorded on a cash basis. Revenues are recognized when qualifying expenditures have been incurred and all grant requirements have been met. Expenditures on this schedule reconcile with amounts reported in the financial statements and the financial reports submitted to the Michigan Department of Education. Management has utilized the MDE NexSys Grant Auditors Report (GAR) in preparing the Schedule of Expenditures of Federal Awards. The amounts reported on the Recipient Entitlement Balance Report, or PAL Report, agree with this schedule for USDA donated food commodities and are reported in the Cash Receipts column. Expenditures include spoilage or pilferage.
De Minimis Rate Used: N
Rate Explanation: Hale Area Schools did not elect to use a flat de minimis rate of 10% of modified total direct costs for their indirect cost rate.
General Fund 1,419,519 , Special Revenue Funds: Food Service Fund 355,397, Federal Revenue Presented in the Financial Statements 1,774,916, Accounts receivable from the year ended June 30, 2022 received more than 60 days after the current year-end and to be recognized as federal revenue in fiscal year June 30, 2024 financial statements: ESSER III 213713 2122 (37,926), Accounts receivable for the year ended June 30, 2023 received more than 60 days after year-end and to be recognized as federal revenue in fiscal year June 30, 2024 financial statements: ESSER III 213713 2122 159,866, Federal Revenue on the Schedule of Expenditures of Federal Awards 1,896,856.