Notes to SEFA
Title: Basis of Presentation
Accounting Policies: The Schedule of Expenditures of Federal Awards is a summary of the cash activity of the Health Department's federal awards and does not present transactions that would be included in financial statements of the Health Department presented on the accrual basis of accounting, as contemplated by accounting principles generally accepted in the United States of America.
De Minimis Rate Used: N
Rate Explanation: District Health Department No. 2 did not elect to use a flat de minimis rate of 10% of modified total direct costs for their indirect cost rate.
The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of the District Health Department No. 2 under programs of the federal government for the year ended September 30, 2023. 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 of Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the District Health Department No.2, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the District Health Department No. 2.
Title: Reconciliation to financial statements
Accounting Policies: The Schedule of Expenditures of Federal Awards is a summary of the cash activity of the Health Department's federal awards and does not present transactions that would be included in financial statements of the Health Department presented on the accrual basis of accounting, as contemplated by accounting principles generally accepted in the United States of America.
De Minimis Rate Used: N
Rate Explanation: District Health Department No. 2 did not elect to use a flat de minimis rate of 10% of modified total direct costs for their indirect cost rate.
Federal revenue presented in the financial statements $2,134,425 Accounts receivable for the year ended September 30, 2022 received more than 60 days after year-end and to be recognized as federal revenue in fiscal year September 30, 2023 financial statements: Empowering Youth Today - Sexual Risk Avoidance Education FY22 (18,957) Medicaid Administration 2205MI5ADM FY22 (15) Medicaid Administration 2205MI5ADM FY23 (800) Medicaid Services 2305MI5MAP FY22 (132) CSHCS Medicaid Administration 2205MI5ADM FY22 (11,005) CSHCS Medicaid Administration 2205MI5ADM FY23 (4,290) MCH B0445223 FFY22 (400) Public Water Supply Supervision FY 2022 FS97548720 (1,836) Standard Operator Assistance Grant FY 2022 FS97548720 (54) Great Lakes Beach Monitoring Grant FY 2022 CU00E99308 (11,439) Accounts receivable for the year ended September 30, 2023 received more than 60 days after year-end and to be recognized as federal revenue in fiscal year September 30, 2024 financial statements: CSHCS Medicaid Administration 2405MI5ADM FFY24 9,792 Medicaid Assistance Program 2305MI5ADM FFY24 16,314 Immunization Cooperative Agreements NH23IP922635 AWY23 1,500 Great Lakes Beach Monitoring Grant FY 2023 CU00E99313 11,184 Homeland Security Grant EMW-2021-SS-00010-S01 54,267 Homeland Security Grant EMW-2022-SS-00031-S01 98 MDHHS recaptured the total questioned costs noted in the prior year single audit during the September 30, 2023 fiscal year (Finding 2022-005), reducing the revenue recognized as of September 30, 2023: 8,959 Federal revenue on the Schedule of Expenditures of Federal Awards $2,187,611.
Title: Grant Payment Adjustments
Accounting Policies: The Schedule of Expenditures of Federal Awards is a summary of the cash activity of the Health Department's federal awards and does not present transactions that would be included in financial statements of the Health Department presented on the accrual basis of accounting, as contemplated by accounting principles generally accepted in the United States of America.
De Minimis Rate Used: N
Rate Explanation: District Health Department No. 2 did not elect to use a flat de minimis rate of 10% of modified total direct costs for their indirect cost rate.
In the current year, various grant payments were reduced in order for the State to recapture previous year's unearned revenue. These reductions are shown on the scheudle of expendtures of federal awards as adjustments.