Notes to SEFA
Title: NONCASH ASSISTANCE
Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of St. Clair County Regional Educational Service Agency (RESA) for the year ended June 30, 2022. Expenditures reported on the Schedule are reported on the same basis of accounting, the modified accrual basis, as the financial statements, although the basis for determining when federal awards are expended 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).Revenue has been accrued at June 30, 2022 to match allowable expenditures incurred during the year for each program. Grant funds received in advance that are in excess of incurred costs have been reflected as unearned revenue. USDA commodities have been recognized as revenue and expenditures when received by RESA.For purposes of charging indirect costs to federal awards, RESA has not elected to use the 10% de minimus cost rate.RESA administers a number of federal grants, which are paid under reimbursement arrangements in which RESA bills the Michigan Department of Education (MDE) or other pass-through grantors for allowable costs incurred. The programs identified on the Schedule are reported in the General and Special Revenue Funds (Special Education, Vocational Education, and Food Service) of RESA. RESA passes a substantial amount these federal grants received from the MDE and other entities through to subrecipients who provide the actual program services. These subrecipient payments are recognized as expenditures by RESA in the period the program services are provided. Because the Schedule presents only a selected portion of the operations of RESA, it is not intended to and does not present the financial position, changes in net position, or cash flows of RESA.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The value of the noncash assistance (commodities) received was determined in accordance with the provisions of the Uniform Guidance. The Recipient Entitlement Balance Report is utilized to determine the value of commodities distributed to RESA.
Title: CASH MANAGEMENT SYSTEM AND GRANT AUDITOR REPORT UTILIZATION
Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of St. Clair County Regional Educational Service Agency (RESA) for the year ended June 30, 2022. Expenditures reported on the Schedule are reported on the same basis of accounting, the modified accrual basis, as the financial statements, although the basis for determining when federal awards are expended 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).Revenue has been accrued at June 30, 2022 to match allowable expenditures incurred during the year for each program. Grant funds received in advance that are in excess of incurred costs have been reflected as unearned revenue. USDA commodities have been recognized as revenue and expenditures when received by RESA.For purposes of charging indirect costs to federal awards, RESA has not elected to use the 10% de minimus cost rate.RESA administers a number of federal grants, which are paid under reimbursement arrangements in which RESA bills the Michigan Department of Education (MDE) or other pass-through grantors for allowable costs incurred. The programs identified on the Schedule are reported in the General and Special Revenue Funds (Special Education, Vocational Education, and Food Service) of RESA. RESA passes a substantial amount these federal grants received from the MDE and other entities through to subrecipients who provide the actual program services. These subrecipient payments are recognized as expenditures by RESA in the period the program services are provided. Because the Schedule presents only a selected portion of the operations of RESA, it is not intended to and does not present the financial position, changes in net position, or cash flows of RESA.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
RESA utilizes the MDE Nexsys System and Grant Auditor Report (GAR) in preparing the Schedule.