Audit 1946

Accounting Policies: Note 1 - The accompanying Schedule of Expenditures of Federal Awards includes the Federal grant activity of the School District, and is prepared on the modified accrual basis of accounting. The information in this schedule is presented in accordance with 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"). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in, the basic financial statements. Note 2 - Management has reported that expenditures in this Schedule of Expenditures of Federal Awards are equal to those amounts reported in the annual or final cost reports. Unallowed differences, if any, have been disclosed to the auditor. Note 3 - The financial reports, including claims for advances and reimbursements and amounts claimed or used for matching are timely, complete, accurate and contain information that is supported by the books and records from which the basic financial statements have been prepared. Grant receipts reported on the Schedule of Expenditures of Federal Awards, as passed through the Michigan Department of Education, reconcile to the Grant Auditor's Report (R7120). Unreconciled differences have been disclosed to the auditor. Note 4 - The School District did not use the 10% de-minimis indirect cost rate allowed under the Uniform Guidance. Note 5 - A reconciliation of expenditures to the Schedule of Expenditures of Federal Awards and sources on the financial statements are as follows: Federal expenditures per Schedule of Expenditures of Federal Awards $ 1,110,568 Unavailable revenues (102,878) Federal sources per financial statements $ 1,007,690 Note 6 - Pass-through entities, where applicable, have been identified in the schedule with an abbreviation, defined as follows: Pass-Through Agency Abbreviation Pass-through Agency Name MDE Michigan Department of Education NES Northwest Education Services De Minimis Rate Used: N Rate Explanation: The School District did not use the 10% de-minimis indirect cost rate allowed under the Uniform Guidance.