Notes to SEFA
Title: Basis of Presentation
Accounting Policies: Expenditures reported on the schedule of federal expenditures are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, where in certain types of expenditures are not allowable or are limited as a reimbursement. Cash received is recorded on the cash basis. Revenues are recognized when qualifying expenditures have been incurred and all grant requirements have been met. Expenditures on this schedule reconcile with amounts reported in the financial statements and the financial reports submitted to the Michigan Department of Education. Management has utilized the MDE NexSys Grant Auditor Report (GAR) in preparing the Schedule of Expenditures of Federal Awards. The amounts reported on the Recipient Entitlement Balance Report, or PAL Report, agree with this schedule for USDA donated food commodities and are reported in the Cash Receipts column. Expenditures include spoilage or pilferage.
De Minimis Rate Used: N
Rate Explanation: Iosco Regional Educational Service Agency 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 Iosco Regional Education Service Agency 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 Iosco Regional Education Service Agency , it is not intended to and does not present the financial position, changes in net assets, or cash flows of Iosco Regional Education Service Agency .
Title: Reconciliation to the Michigan Department of Education (MDE) NexSys Grant Section Auditors Report (GAR):
Accounting Policies: Expenditures reported on the schedule of federal expenditures are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, where in certain types of expenditures are not allowable or are limited as a reimbursement. Cash received is recorded on the cash basis. Revenues are recognized when qualifying expenditures have been incurred and all grant requirements have been met. Expenditures on this schedule reconcile with amounts reported in the financial statements and the financial reports submitted to the Michigan Department of Education. Management has utilized the MDE NexSys Grant Auditor Report (GAR) in preparing the Schedule of Expenditures of Federal Awards. The amounts reported on the Recipient Entitlement Balance Report, or PAL Report, agree with this schedule for USDA donated food commodities and are reported in the Cash Receipts column. Expenditures include spoilage or pilferage.
De Minimis Rate Used: N
Rate Explanation: Iosco Regional Educational Service Agency did not elect to use a flat de minimis rate of 10% of modified total direct costs for their indirect cost rate.
Agency total current year payments per MDE NexSys GAR $1,968,029
Addition of receipts received by the Agency in the current year but not included in the NexSys System for the current year time frame:
Special Education ARP - Flowthrough 221280 21-22 2,010
Addition of receipts not passed through the Michigan Department of Education and not included in the NexSys System:
Special Education Teacher Tuition Reimbursement 2,294
Secondary CTE Perkins 243520 99,515
Small Rural School Achievement Program S358A221441 27,019
Medicaid Outreach Claims 23-24 30,021
Less an immaterial rounding difference (1)
Total Current Year Receipts on the Schedule of Expenditurres of Federal Awards $2,128,887
Title: Reconciliation to Financial Statements:
Accounting Policies: Expenditures reported on the schedule of federal expenditures are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, where in certain types of expenditures are not allowable or are limited as a reimbursement. Cash received is recorded on the cash basis. Revenues are recognized when qualifying expenditures have been incurred and all grant requirements have been met. Expenditures on this schedule reconcile with amounts reported in the financial statements and the financial reports submitted to the Michigan Department of Education. Management has utilized the MDE NexSys Grant Auditor Report (GAR) in preparing the Schedule of Expenditures of Federal Awards. The amounts reported on the Recipient Entitlement Balance Report, or PAL Report, agree with this schedule for USDA donated food commodities and are reported in the Cash Receipts column. Expenditures include spoilage or pilferage.
De Minimis Rate Used: N
Rate Explanation: Iosco Regional Educational Service Agency did not elect to use a flat de minimis rate of 10% of modified total direct costs for their indirect cost rate.
General Fund $516,484
Vocational Education 99,515
Special Education 1,544,031
Food Service Fund 74,183
Federal Revenue on the Schedule of Expenditures of Federal Awards $2,234,213