Title: Note 4. Adjustments to Grants and Transfers
Accounting Policies: Alpena Community College has formatted the Schedule to conform to the recommendations of the Michigan Department of Education. The Schedule has been arranged to provide information on both actual cash received and the revenue recognized. Accordingly, the effects of accruals of accounts receivable, unearned revenue and accounts payable items at both the beginning and end of the fiscal year have been reported.Cash received is recorded on the cash basis; expenditures are recorded on the accrual basis of accounting, which is described in Note 1 to the Colleges financial statements. Revenues are recognized when the qualifying expenditures have been incurred and all grant requirements have been met.Expenditures reported on the Schedule are reported on the same basis of accounting as the basic financial statements which uses an economic resource measurement focus and accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Pass-through entity identifying numbers are presented where available.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
Alpena Community College transferred $71,597 of the Federal Work-Study program (ALN #84.033) to the Federal Supplemental Educational Opportunity Grants (ALN #84.007), which it expended in the 2021-2022 award year.
Title: Note 5. Federal Direct Student Loans
Accounting Policies: Alpena Community College has formatted the Schedule to conform to the recommendations of the Michigan Department of Education. The Schedule has been arranged to provide information on both actual cash received and the revenue recognized. Accordingly, the effects of accruals of accounts receivable, unearned revenue and accounts payable items at both the beginning and end of the fiscal year have been reported.Cash received is recorded on the cash basis; expenditures are recorded on the accrual basis of accounting, which is described in Note 1 to the Colleges financial statements. Revenues are recognized when the qualifying expenditures have been incurred and all grant requirements have been met.Expenditures reported on the Schedule are reported on the same basis of accounting as the basic financial statements which uses an economic resource measurement focus and accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Pass-through entity identifying numbers are presented where available.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
Alpena Community College originates but does not provide funding for Federal Direct Student Loans (FDLs). The amount presented in the schedule of expenditures of federal awards represents the value of new FDLs accepted by students during the year ended June 30, 2022.
Title: Note 6. Reconciliation to U.S. Department of Education Central Automated P
Accounting Policies: Alpena Community College has formatted the Schedule to conform to the recommendations of the Michigan Department of Education. The Schedule has been arranged to provide information on both actual cash received and the revenue recognized. Accordingly, the effects of accruals of accounts receivable, unearned revenue and accounts payable items at both the beginning and end of the fiscal year have been reported.Cash received is recorded on the cash basis; expenditures are recorded on the accrual basis of accounting, which is described in Note 1 to the Colleges financial statements. Revenues are recognized when the qualifying expenditures have been incurred and all grant requirements have been met.Expenditures reported on the Schedule are reported on the same basis of accounting as the basic financial statements which uses an economic resource measurement focus and accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Pass-through entity identifying numbers are presented where available.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The following shows a reconciliation of the direct programs total of the U.S. Department of Education grants received reported on the schedule of expenditures of federal awards to U.S. Department of Education Central Automated Process System payment requests (EDCAPS G5): EDCAPS G5:Total draws $8,222,330 Total refunds (15,346) $8,206,984 Schedule of expenditures of federal awards (SEFA):Current year direct program receipts (cash basis) $8,206,984 Revenue unearned (accrued) at June 30, 2021 (496,717)Revenue accrued (unearned) at June 30, 2022 57,152 (439,565)Current year direct program federal expenditures $7,767,419
Title: Note 8. Relationship of the Schedule of Expenditures of Federal Awards to t
Accounting Policies: Alpena Community College has formatted the Schedule to conform to the recommendations of the Michigan Department of Education. The Schedule has been arranged to provide information on both actual cash received and the revenue recognized. Accordingly, the effects of accruals of accounts receivable, unearned revenue and accounts payable items at both the beginning and end of the fiscal year have been reported.Cash received is recorded on the cash basis; expenditures are recorded on the accrual basis of accounting, which is described in Note 1 to the Colleges financial statements. Revenues are recognized when the qualifying expenditures have been incurred and all grant requirements have been met.Expenditures reported on the Schedule are reported on the same basis of accounting as the basic financial statements which uses an economic resource measurement focus and accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Pass-through entity identifying numbers are presented where available.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
Revenues from federal sources are reported in Alpena Community College's basic financial statements as follows: General fund $8,934 Restricted fund 7,159,454 Total Federal revenues per basic financial statements $7,168,388 Federal revenues from veterans administration programincome reported in the audited financial statementsat June 30, 2022 and not reported as grants in theschedule of expenditures of federal awards (SEFA) (528)Federal (Direct Loan) Programs, CFDA #84.268previously not reported as revenues in the auditedbasic financial statements at June 30, 2022 884,578 Rounding difference (2)(SEFA) Current year federal expenditures $8,052,436
Title: Note 7. Grant Section Auditors Report
Accounting Policies: Alpena Community College has formatted the Schedule to conform to the recommendations of the Michigan Department of Education. The Schedule has been arranged to provide information on both actual cash received and the revenue recognized. Accordingly, the effects of accruals of accounts receivable, unearned revenue and accounts payable items at both the beginning and end of the fiscal year have been reported.Cash received is recorded on the cash basis; expenditures are recorded on the accrual basis of accounting, which is described in Note 1 to the Colleges financial statements. Revenues are recognized when the qualifying expenditures have been incurred and all grant requirements have been met.Expenditures reported on the Schedule are reported on the same basis of accounting as the basic financial statements which uses an economic resource measurement focus and accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Pass-through entity identifying numbers are presented where available.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
Management has utilized the Michigan Department of Educations NexSys Grant Auditor Report (GAR) in preparing the schedule of expenditures of federal awards. Unreconciled differences, if any, have been disclosed to the auditor.