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 where certain types of expenditures are not allowable or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: Royal Oak Schools has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.
The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Royal Oak 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 Royal Oak Schools, it is not intended to and does not present the financial position or changes in fund balance or net position of Royal Oak Schools.
Title: Reconciliation to the 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 where certain types of expenditures are not allowable or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: Royal Oak Schools has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.
The Schedule of Expenditures of Federal Awards reconciles to the financial statements as follows: Federal revenues per the financial statements: $ 5,134,972, Child Care Relief Fund Grants received as a beneficiary: (576,217), Federal expenditures per Schedule of Expenditures of Federal Awards: $ 4,558,755. An adjustment of $11,990 was made to reclass expenditures to 221970 School Breakfast Program that were originally charged to 231960 National School Lunch Program. Another adjustment was made of $6,162 to remove expenditures from program 221130 Federal Adult Education ABE Instruction for funds that were taken back by the state. Another adjustment was made of $7,169 to remove expenditures from program 221530 Title I Part A for funds that were taken back by the state.
Title: Subrecipients
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 where certain types of expenditures are not allowable or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: Royal Oak Schools has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.
The School District provided $14,754 Title III, Part A (AL number 84.365, project number 230580) funds to subrecipients. The District’s only subrecipient was AGBU Alex-Marie Manoogian School – 63901, which received $14,754.
Title: Michigan Department of Education Disclosures
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 where certain types of expenditures are not allowable or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: Royal Oak Schools has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.
The federal amounts reported on the Grant Auditor Report reconcile to the schedule of expenditures of federal awards as follows:
Grant: Federal Adult Education ABE Instruction 221130, Amount on GAR: $ (6,162), Amount on SEFA: $ 52,946, Difference: $ (59,108), Reason for variance: Timing of deposit
Grant: Title I Part A - 221530, Amount on GAR: (7,169), Amount on SEFA: 31,969, Difference: (39,138), Reason for variance: Timing of deposit
Grant: Title II Part A 220520, Amount on GAR: 17,896, Amount on SEFA: 49,558, Difference: (31,662), Reason for variance: Timing of deposit
Grant: Title III Part A Immigrant Students 220580, Amount on GAR: 14,529, Amount on SEFA: 28,711, Difference: (14,182), Reason for variance: Timing of deposit
Grant: Title III Part A Immigrant Students 220570, Amount on GAR: 75, Amount on SEFA: 301, Difference: (226), Reason for variance: Timing of deposit
Grant: Title IV Project number 221750-2122, Amount on GAR: -, Amount on SEFA: 6,366, Difference: (6,366), Reason for variance: Timing of deposit
Grant: COVID-19 ESSER I Project 203710, Amount on GAR: -, Amount on SEFA: 19,563, Difference: (19,563), Reason for variance: Timing of deposit
Grant: COVID-19 ESSER III (11t) 213723, Amount on GAR: 41,852, Amount on SEFA: 1,282,038, Difference: (1,240,186), Reason for variance: Timing of deposit
Total $ 61,021 $ 1,471,452 (1,410,431)
The amounts reported on the recipient entitlement balance report agree with the schedule of expenditures of federal awards for U.S.D.A donated food commodities.