Audit 294691

Accounting Policies: Note 1 - The schedule of expenditures of federal awards is prepared using the accrual basis of accounting. The information in this schedule 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"). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the consolidated financial statements. Note 2 - Management has reported that expenditures in the schedule of expenditures of federal awards are equal to or derived from 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 financial statements have been prepared. Note 4 - The Organization used the 10% de minimis indirect cost rate allowed under the Uniform Guidance. Note 5 - A reconciliation of expenditures on the schedule of expenditures of federal awards with Federal sources reported on the consolidated financial statements are as follows: Federal expenditures per schedule of expenditures of federal awards $ 1,694,686 State and other sources 1,794,047 Grants and contracts per consolidated financial statements $ 3,488,733 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 AAA Area Agency on Aging of Northwest Michigan MDHHS Michigan Department of Health and Human Services MDLEO Michigan Department of Labor and Economic Opportunity of the School District, and is presented on the modified accrual basis of accounting. The information in this schedule 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"). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, 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-minimus cost rate under the Uniform Administrative Requirements. Note 5 A reconciliation of expenditures on the Schedule of Expenditures of Federal Awards with Federal sources reported on the financial statements are as follows: Federal expenditures per schedule of expenditures of federal awards $ 1,547,509 Child Care Stabilization Funds 111,426 Total federal sources per financial statements $ 1,658,935 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: Y Rate Explanation: The Organization used the 10% de minimis indirect cost rate allowed under the Uniform Guidance.