Title: Note 1 - Basis of Presentation
Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting, which is
described in Note 1 to the School District's financial statements. 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. Pass-through entity identifying
numbers are presented where applicable and have been identified in the Schedule.
Cash received is recorded on the cash basis; expenditures are recorded on the modified accrual
basis of accounting. Revenues are recognized when the qualifying expenditures have been
included and all grant requirements have been met.
The Schedule has been arranged to provide information on both the 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 the end of the fiscal year have been reported.
Expenditures are in agreement with amounts reported in the financial statements and the grant
financial reports. The amounts on the Grant Auditor Report reconcile with this Schedule.
The School District has elected not to use the 10-percent de minimus indirect cost rate to recover
indirect costs as allowed under the Uniform Guidance.
De Minimis Rate Used: N
Rate Explanation: N/A
The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the
federal grant activity of Chelsea School District (the “School District”) under programs of the
federal government for the year ended June 30, 2023. The information in this schedule is presented
in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200,
Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal
Awards. Because the schedule presents only a selected portion of the operations of the School
District, it is not intended to and does not present the financial position, changes in net position,
or cash flows of the School District.
Title: Note 2 - Summary of Significant Accounting Policies
Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting, which is
described in Note 1 to the School District's financial statements. 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. Pass-through entity identifying
numbers are presented where applicable and have been identified in the Schedule.
Cash received is recorded on the cash basis; expenditures are recorded on the modified accrual
basis of accounting. Revenues are recognized when the qualifying expenditures have been
included and all grant requirements have been met.
The Schedule has been arranged to provide information on both the 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 the end of the fiscal year have been reported.
Expenditures are in agreement with amounts reported in the financial statements and the grant
financial reports. The amounts on the Grant Auditor Report reconcile with this Schedule.
The School District has elected not to use the 10-percent de minimus indirect cost rate to recover
indirect costs as allowed under the Uniform Guidance.
De Minimis Rate Used: N
Rate Explanation: N/A
Expenditures reported on the Schedule are reported on the accrual basis of accounting, which is
described in Note 1 to the School District's financial statements. 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. Pass-through entity identifying
numbers are presented where applicable and have been identified in the Schedule.
Cash received is recorded on the cash basis; expenditures are recorded on the modified accrual
basis of accounting. Revenues are recognized when the qualifying expenditures have been
included and all grant requirements have been met.
The Schedule has been arranged to provide information on both the 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 the end of the fiscal year have been reported.
Expenditures are in agreement with amounts reported in the financial statements and the grant
financial reports. The amounts on the Grant Auditor Report reconcile with this Schedule.
The School District has elected not to use the 10-percent de minimus indirect cost rate to recover
indirect costs as allowed under the Uniform Guidance.
Title: Note 3 - Noncash Assistance
Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting, which is
described in Note 1 to the School District's financial statements. 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. Pass-through entity identifying
numbers are presented where applicable and have been identified in the Schedule.
Cash received is recorded on the cash basis; expenditures are recorded on the modified accrual
basis of accounting. Revenues are recognized when the qualifying expenditures have been
included and all grant requirements have been met.
The Schedule has been arranged to provide information on both the 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 the end of the fiscal year have been reported.
Expenditures are in agreement with amounts reported in the financial statements and the grant
financial reports. The amounts on the Grant Auditor Report reconcile with this Schedule.
The School District has elected not to use the 10-percent de minimus indirect cost rate to recover
indirect costs as allowed under the Uniform Guidance.
De Minimis Rate Used: N
Rate Explanation: N/A
The value of the noncash assistance received was determined in accordance with the provisions of
Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements,
Cost Principles, and Audit Requirements for Federal Awards. The grantee received no noncash
assistance during the year ended June 30, 2023 that is not included on the schedule of expenditures
of federal awards.
Title: Note 4 - Reconciliation to the Schedule of Expenditures of Federal Awards
Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting, which is
described in Note 1 to the School District's financial statements. 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. Pass-through entity identifying
numbers are presented where applicable and have been identified in the Schedule.
Cash received is recorded on the cash basis; expenditures are recorded on the modified accrual
basis of accounting. Revenues are recognized when the qualifying expenditures have been
included and all grant requirements have been met.
The Schedule has been arranged to provide information on both the 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 the end of the fiscal year have been reported.
Expenditures are in agreement with amounts reported in the financial statements and the grant
financial reports. The amounts on the Grant Auditor Report reconcile with this Schedule.
The School District has elected not to use the 10-percent de minimus indirect cost rate to recover
indirect costs as allowed under the Uniform Guidance.
De Minimis Rate Used: N
Rate Explanation: N/A
The following schedule reconciles federal sources reported in the governmental funds financial
statements to the federal expenditures reported in the Schedule:
Federal revenues as reported in the financial statements $ 2,924,784
Less: federal assistance received as beneficiary (469,178)
Expenditures per schedule of expenditures of federal awards $ 2,455,606
Title: Note 5 – Pass-through Agencies
Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting, which is
described in Note 1 to the School District's financial statements. 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. Pass-through entity identifying
numbers are presented where applicable and have been identified in the Schedule.
Cash received is recorded on the cash basis; expenditures are recorded on the modified accrual
basis of accounting. Revenues are recognized when the qualifying expenditures have been
included and all grant requirements have been met.
The Schedule has been arranged to provide information on both the 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 the end of the fiscal year have been reported.
Expenditures are in agreement with amounts reported in the financial statements and the grant
financial reports. The amounts on the Grant Auditor Report reconcile with this Schedule.
The School District has elected not to use the 10-percent de minimus indirect cost rate to recover
indirect costs as allowed under the Uniform Guidance.
De Minimis Rate Used: N
Rate Explanation: N/A
The School District receives certain federal grants as subawards from non‐federal entities. Passthrough
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
WISD Washtenaw Intermediate School District
MISD Monroe Intermediate School District