Audit 174603

Accounting Policies: Basis of PresentationThe accompanying schedule of expenditures of federal awards ("the Schedule") includes the federal grantactivity of Detroit Independent School District and is presented on the modified accrual basis of accounting.The information in the Schedule is presented in accordance with the requirements of Title 2 U.S. Code ofFederal Regulations (CFR) Part 200 Uniform Administrative Requirements, Cost Principles, and AuditRequirements for Federal Awards. Therefore, some amounts presented in this schedule may differ fromamounts presented in, or used in the preparation of, the basic financial statements. Federal grants fundsare considered to be earned to the extent of expenditures made under the provisions of the grant andaccordingly when such funds are received, they are recorded as deferred revenues until earned.The Commodity Supplemental Food Program (CFDA 10.565) received like-kind goods. The monetary valueof these goods was $23,117 for the year ended June 30, 2022. This monetary value was reported on theschedule.The District participates in numerous state and federal grant programs governed by various rules andregulations of the grantor agencies. Costs charged to the respective grant programs are subject to auditand adjustment by the grantor agencies; therefore, to the extent that the District has not complied with therules and regulations governing the grants, if any, refunds of any money received may be required and thecollectability of any related receivable at June 30, 2022, may be impaired. In the opinion of the District,there are no significant contingent liabilities relating to compliance with the rules and regulations governingthe respective grants; therefore, no provision has been recorded in the accompanying basic financialstatements for such contingency.Detroit Independent School District has elected not to use the 10 -percent de minim is indirect cost rateallowed under the Uniform Guidance.Reconciliation of Federal AwardsThe following reconciles federal expenditures per the Schedule of Expenditures of Federal Awards (SEFA)to the federal revenue reported on Exhibit C-2:Federal expenditures per SEFA $2,586,477SHARS 141,361Federal revenue per Exhibit C-2 $2,727,838 De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.