Notes to SEFA
Title: BASIS OF PRESENTATION
Accounting Policies: Expenditures reported on the Schedule are reporting on the modified accrual basis of accounting. 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. Negative amounts (if any) shown
on the schedule represent adjustments or credits made in the normal course of business to amounts reported as
expenditures in prior years. Pass-through identifying numbers are present where available.
De Minimis Rate Used: N
Rate Explanation: Dearborn Heights
School District No. 7 has elected to not use the 10-percent de minimis indirect cost rate allowed under the
Uniform Guidance. The District does not pass through federal funds.
The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal award
activity of Dearborn Heights School District No. 7 under programs of the federal government for the year ended
June 30, 2024. 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). Because the Schedule presents only a selected portion of
the operations of Dearborn Heights School District No. 7, it is not intended to and does not present the financial
position or changes in net position of Dearborn Heights School District No. 7.
The District qualifies for low-risk auditee status. Management has utilized the NexSys Cash Management System
and the Grant Auditor Report in preparing the Schedule of Expenditures of Federal Awards.
Title: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Accounting Policies: Expenditures reported on the Schedule are reporting on the modified accrual basis of accounting. 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. Negative amounts (if any) shown
on the schedule represent adjustments or credits made in the normal course of business to amounts reported as
expenditures in prior years. Pass-through identifying numbers are present where available.
De Minimis Rate Used: N
Rate Explanation: Dearborn Heights
School District No. 7 has elected to not use the 10-percent de minimis indirect cost rate allowed under the
Uniform Guidance. The District does not pass through federal funds.
Expenditures reported on the Schedule are reporting on the modified accrual basis of accounting. 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. Negative amounts (if any) shown
on the schedule represent adjustments or credits made in the normal course of business to amounts reported as
expenditures in prior years. Pass-through identifying numbers are present where available. Dearborn Heights
School District No. 7 has elected to not use the 10-percent de minimis indirect cost rate allowed under the
Uniform Guidance. The District does not pass through federal funds.
Title: RECONCILIATION WITH AUDITED FINANCIAL STATEMENTS
Accounting Policies: Expenditures reported on the Schedule are reporting on the modified accrual basis of accounting. 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. Negative amounts (if any) shown
on the schedule represent adjustments or credits made in the normal course of business to amounts reported as
expenditures in prior years. Pass-through identifying numbers are present where available.
De Minimis Rate Used: N
Rate Explanation: Dearborn Heights
School District No. 7 has elected to not use the 10-percent de minimis indirect cost rate allowed under the
Uniform Guidance. The District does not pass through federal funds.
Federal expenditures are reported as revenue in the following funds in the financial statements:
General Fund $ 5,108,363
Other nonmajor governmental funds 1,622,908
Expenditures per schedule of expenditures of federal awards $ 6,731,271