Audit 23712

Title: QZAB FEDERAL LOAN Accounting Policies: The accompanying schedule of expenditures of federal awards ("the Schedule") includes the federal award activity of the Pellston Public Schools under programs of the federal government for the year ended June 30, 2022. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of FederalRegulations Part 200, Uniform Administrative Requirements, Cost Principals, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of Pellston Public Schools it is not intended to and does not present the financial position, changes in net assets, or cashflows of the Pellston Public Schools.The District does not qualify for low-risk auditee status. Management has utilized the Cash Management Systemand Grant Auditor Report in preparing the Schedule of Expenditures of Federal Awards.Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Suchexpenditures are recognized following the cost principals contained in the Uniform Guidance, wherein certaintypes of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on theSchedule represent adjustments or credits made in the normal course of business to amounts reported asexpenditures in prior years. Pass-through entity identifying numbers are presented where available.The Pellston Public Schools has elected to use a de minimus indirect cost rate allowed underthe Uniform Guidance. De Minimis Rate Used: Y Rate Explanation: The auditee used the de minimis cost rate. A RECONCILING ITEM BETWEEN THE FUND FINANCIAL FEDERAL SOURCES AND THE SEFA IS QZAB CREDITS OF $11,532. THE OUTSTANDING LOAN BALANCE OF THIS FEDERAL LOAN AT 6/30/22 IS $135,000. QZAB LOAN PROGRAM (99.U84)