Audit 325733

Title: Basis of Presentation Accounting Policies: See Additional Notes tab for significant policies used in preparing the SEFA De Minimis Rate Used: N Rate Explanation: Use rates set by the MI Department of Educuation, where applicable The accompanying Schedule of Expenditures of Federal Awards (“the Schedule”) includes the federal grant activity of Forest Area Community Schools 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 (the “Uniform Guidance”). Because the Schedule presents only a selected portion of the operations of Forest Area Community Schools, it is not intended to and does not present the financial position, changes in net position, or cash flows of Forest Area Community Schools. The District does not pass through federal funds to sub recipients.

Title: Summary of Significant Accounting Policies Accounting Policies: See Additional Notes tab for significant policies used in preparing the SEFA De Minimis Rate Used: N Rate Explanation: Use rates set by the MI Department of Educuation, where applicable Expenditures reported on the Schedule are reported 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 entity identifying numbers are presented where available. Forest Area Community Schools has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance.

Title: Reconciliation of Revenues with Expenditures for Federal Financial Assistance Programs Accounting Policies: See Additional Notes tab for significant policies used in preparing the SEFA De Minimis Rate Used: N Rate Explanation: Use rates set by the MI Department of Educuation, where applicable See the Notes to the SEFA table instead

Title: Reconciliation of Grant Auditor Report with Schedule of Expenditures of Federal Awards Accounting Policies: See Additional Notes tab for significant policies used in preparing the SEFA De Minimis Rate Used: N Rate Explanation: Use rates set by the MI Department of Educuation, where applicable See the Notes to the SEFA table instead

Title: Adjustments Accounting Policies: See Additional Notes tab for significant policies used in preparing the SEFA De Minimis Rate Used: N Rate Explanation: Use rates set by the MI Department of Educuation, where applicable To adjust 2021-2022 accrued REAP of $3,843 that was actually received in 2022-2023. To adjust for $51 that should have been accrued for 2022-2023 related to ARP – Homeless II Grant.