Audit 305437

Accounting Policies: Note 1 The accompanying Schedule of Expenditures of Federal Awards includes the Federal grant activity of the Health Department, and is presented on the modified accrual basis of accounting. The information in this schedule is presented in accordance with 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 basic financial statements. Note 2 Management has reported that expenditures in this Schedule of Expenditures of Federal Awards are equal to or derived from 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. Note 4 An analysis of the total Federal and State grants follows: Federal expenditures per Schedule of Expenditures of Federal Awards $ 5,535,302 State financial assistance 5,141,045 Total State and Federal grants revenue reported in the basic financial statements $10,676,347 Note 5 The Health Department did not use the 10% de-minimus cost rate under the Uniform Administrative Requirements. Note 6 The Health Department receives certain federal grants as subawards from non-federal entities. 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 EGLE Michigan Department of Environment, Great Lakes and Energy MCRH Michigan Center for Rural Health MDHHS Michigan Department of Health and Human Services MFF Michigan Fitness Foundation NMRE Northern Michigan Regional Entity SAMHSA Substance Abuse and Mental Health Services Administration USDAFNS USDA Food and Nutrition Service NACCHO National Association of County and City Health Officials 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: N Rate Explanation: The Health Department did not use the 10% de-minimus cost rate under the Uniform Administrative Requirements.