Audit 311062

Title: Note A - Basis of Presentation Accounting Policies: Expenditures reported on the Schedule are reported on the cash basis of accounting. Such expenditures are recognized following the audit 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), wherein certain types of expenditures are not allowable or are limited as to reimbursement. No accruals have been recorded on the Schedule for amounts passed through to subrecipient due to a unique funding methodology employed by the grantor agency, the Michigan Department of Health and Human Services (MDHHS). The Organization is required to report all expenditures incurred during the audit period on quarterly cost reports and submit to MDHHS, who analyzes and makes a determination of the Federal award under which the costs will be claimed. An allocation of all Organization expenditures to their respective funding source, both Federal and State, was provided by MDHHS subsequent to year-end and was reported on the cash basis of accounting. Whereas a grant receivable existed at September 30, 2023, and is properly reflected in the financial statements of the Organization, the federal portion is indeterminable based on the aforementioned funding methodology. During the year ended September 30, 2023, the Organization passed through additional funding to its partner agencies, including $1,500,000 in Workforce Stabilization grants and $5,549,650 for the purpose of establishing a risk reserve for future expenditures incurred by the Child Welfare Continuum of Care program. Funds distributed are a culmination of net assets generated in multiple fiscal years and are an unknown combination of State and Federal dollars based on the unique funding methodology. Federal expenditures, by program, are reported each year by the Organization based on allocations provided by MDHHS. Because the additional funds received by the Organization during the current year were included in expenditure totals used for current or prior year allocations, we have treated them as State dollars and have appropriately excluded from the schedule of expenditures of federal awards. De Minimis Rate Used: N Rate Explanation: Indirect cost rates are only applied for some grants and are based solely on allowable rates established with the grantor; communicated to the District in the associated grant agreement. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of West Michigan Partnership for Children under programs of the federal government for the year ended September 30, 2023. The information in this Schedule is presented in accordance with the audit 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). Because the Schedule presents only a selected portion of the operations of West Michigan Partnership for Children, it is not intended to and does not present the financial position, changes in net assets, or cash flows of West Michigan Partnership for Children.

Title: Note D - Federal Income Reconciliation Accounting Policies: Expenditures reported on the Schedule are reported on the cash basis of accounting. Such expenditures are recognized following the audit 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), wherein certain types of expenditures are not allowable or are limited as to reimbursement. No accruals have been recorded on the Schedule for amounts passed through to subrecipient due to a unique funding methodology employed by the grantor agency, the Michigan Department of Health and Human Services (MDHHS). The Organization is required to report all expenditures incurred during the audit period on quarterly cost reports and submit to MDHHS, who analyzes and makes a determination of the Federal award under which the costs will be claimed. An allocation of all Organization expenditures to their respective funding source, both Federal and State, was provided by MDHHS subsequent to year-end and was reported on the cash basis of accounting. Whereas a grant receivable existed at September 30, 2023, and is properly reflected in the financial statements of the Organization, the federal portion is indeterminable based on the aforementioned funding methodology. During the year ended September 30, 2023, the Organization passed through additional funding to its partner agencies, including $1,500,000 in Workforce Stabilization grants and $5,549,650 for the purpose of establishing a risk reserve for future expenditures incurred by the Child Welfare Continuum of Care program. Funds distributed are a culmination of net assets generated in multiple fiscal years and are an unknown combination of State and Federal dollars based on the unique funding methodology. Federal expenditures, by program, are reported each year by the Organization based on allocations provided by MDHHS. Because the additional funds received by the Organization during the current year were included in expenditure totals used for current or prior year allocations, we have treated them as State dollars and have appropriately excluded from the schedule of expenditures of federal awards. De Minimis Rate Used: N Rate Explanation: Indirect cost rates are only applied for some grants and are based solely on allowable rates established with the grantor; communicated to the District in the associated grant agreement. “See the Notes to the SEFA for chart/table”

Title: Note E - Subsequent Events Accounting Policies: Expenditures reported on the Schedule are reported on the cash basis of accounting. Such expenditures are recognized following the audit 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), wherein certain types of expenditures are not allowable or are limited as to reimbursement. No accruals have been recorded on the Schedule for amounts passed through to subrecipient due to a unique funding methodology employed by the grantor agency, the Michigan Department of Health and Human Services (MDHHS). The Organization is required to report all expenditures incurred during the audit period on quarterly cost reports and submit to MDHHS, who analyzes and makes a determination of the Federal award under which the costs will be claimed. An allocation of all Organization expenditures to their respective funding source, both Federal and State, was provided by MDHHS subsequent to year-end and was reported on the cash basis of accounting. Whereas a grant receivable existed at September 30, 2023, and is properly reflected in the financial statements of the Organization, the federal portion is indeterminable based on the aforementioned funding methodology. During the year ended September 30, 2023, the Organization passed through additional funding to its partner agencies, including $1,500,000 in Workforce Stabilization grants and $5,549,650 for the purpose of establishing a risk reserve for future expenditures incurred by the Child Welfare Continuum of Care program. Funds distributed are a culmination of net assets generated in multiple fiscal years and are an unknown combination of State and Federal dollars based on the unique funding methodology. Federal expenditures, by program, are reported each year by the Organization based on allocations provided by MDHHS. Because the additional funds received by the Organization during the current year were included in expenditure totals used for current or prior year allocations, we have treated them as State dollars and have appropriately excluded from the schedule of expenditures of federal awards. De Minimis Rate Used: N Rate Explanation: Indirect cost rates are only applied for some grants and are based solely on allowable rates established with the grantor; communicated to the District in the associated grant agreement. The Michigan Department of Health and Human Services (MDHHS) commenced an audit of WMPC’s records for the period October 1, 2020 through September 30, 2024 in February 2024. As part of the engagement, which has not been completed as of the date of this report, an error was discovered that impacts current year federal expenditures reported and may necessitate adjustments to previously submitted single audit reports. Confirmations of federal expenditures, provided each year to the Organization by MDHHS, incorrectly excluded a component of federal funding and, as a result, significantly understated the federal expenditures for each Child Welfare Continuum of Care program. Necessary corrections have been made to the Schedule of Expenditures of Federal Awards for the year ended September 30, 2023, and the Organization is working with MDHHS to determine the impact on prior audit periods. Reissuance of reports and resubmission to the Federal Audit Clearinghouse will occur if material misstatements are found to have occurred in a previous reporting period.