Notes to SEFA
Title: Basis of Presentation
Accounting Policies: Expenditures reported on the schedule are reported on the modified accrual basis of accounting. Such expenditures are
recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not
allowable or are limited as to reimbursement. Negative amounts, (if any) shown on the schedule represent adjustments or
credits made in the normal course of business to amounts reported as expenditures in prior years. Passthrough entity
identifying numbers are presented where available.
De Minimis Rate Used: N
Rate Explanation: Brown City Community Schools has elected to not use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
The accompanying schedule of expenditures of federal awards (the “schedule”) includes the
federal award activity of Brown City Community Schools’ under programs of the federal government for the year ended
June 30, 2023. The information in this schedule is presented in accordance with requirements of Title 2 U.S. Code of
Federal Regulations (CFR) 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
Brown City Community Schools, it is not intended to and does not present the financial position or changes in net
position of Brown City Community Schools.
The District qualifies for low-risk auditee status. Management has utilized the NexSys, Cash Management System
(CMS) and the Grant Auditor Report in preparing the Schedule of Expenditures of Federal Awards.
Title: Summary of Significant Accounting Policies
Accounting Policies: Expenditures reported on the schedule are reported on the modified accrual basis of accounting. Such expenditures are
recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not
allowable or are limited as to reimbursement. Negative amounts, (if any) shown on the schedule represent adjustments or
credits made in the normal course of business to amounts reported as expenditures in prior years. Passthrough entity
identifying numbers are presented where available.
De Minimis Rate Used: N
Rate Explanation: Brown City Community Schools has elected to not use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
Expenditures reported on the schedule are reported on the modified
accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform
Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative
amounts (if any) shown on the schedule represent adjustments or credits made in the normal course of business to
amounts reported as expenditures in prior years. Pass-through entity identifying numbers are presented where
available. The District has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform
Guidance.
Title: Reconciliation with Audited Financial Statements
Accounting Policies: Expenditures reported on the schedule are reported on the modified accrual basis of accounting. Such expenditures are
recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not
allowable or are limited as to reimbursement. Negative amounts, (if any) shown on the schedule represent adjustments or
credits made in the normal course of business to amounts reported as expenditures in prior years. Passthrough entity
identifying numbers are presented where available.
De Minimis Rate Used: N
Rate Explanation: Brown City Community Schools has elected to not use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
See the Notes to the SEFA for chart/table
Title: Adjustments
Accounting Policies: Expenditures reported on the schedule are reported on the modified accrual basis of accounting. Such expenditures are
recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not
allowable or are limited as to reimbursement. Negative amounts, (if any) shown on the schedule represent adjustments or
credits made in the normal course of business to amounts reported as expenditures in prior years. Passthrough entity
identifying numbers are presented where available.
De Minimis Rate Used: N
Rate Explanation: Brown City Community Schools has elected to not use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
Adjustments were made for ALN #84.425 ($188,812) for prior year federal expenditures incurred but not
reported on the SEFA.
Title: Program clusters
Accounting Policies: Expenditures reported on the schedule are reported on the modified accrual basis of accounting. Such expenditures are
recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not
allowable or are limited as to reimbursement. Negative amounts, (if any) shown on the schedule represent adjustments or
credits made in the normal course of business to amounts reported as expenditures in prior years. Passthrough entity
identifying numbers are presented where available.
De Minimis Rate Used: N
Rate Explanation: Brown City Community Schools has elected to not use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
Program clusters contained within the schedule are as follows:
Child Nutrition Cluster consists of Assistance Listing #10.553 and #10.555.
Special Education (IDEA) Cluster of Assistance Listing #84.027A.