Audit 325947

Accounting Policies: Note 1 The accompanying Schedule of Expenditures of Federal Awards includes the Federal grant activity of the School District, and is presented on the modified accrual basis of accounting. 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”). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. Note 2 Management has reported that expenditures in this Schedule of Expenditures of Federal Awards are equal to those 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 and accurate, and contain information that is supported by the books and records from which the basic financial statements have been prepared. Grant receipts reported on the Schedule of Expenditures of Federal Awards, as passed through the Michigan Department of Education (“MDE”), reconcile to the MDE Cash Management System (“CMS”) Grant Auditor Report. Unreconciled differences have been disclosed to the auditor. Note 4 A reconciliation of expenditures on the Schedule of Expenditures of Federal Awards and sources on the financial statements are as follows: Federal expenditures per Schedule of Expenditures of Federal Awards $ 9,345,329 Adjustments to prior year expenditures for GSRP Expansion (80,683) Payments in lieu of taxes and other adjustments 361 Federal sources per financial statements $ 9,265,007 Note 5 The School District did not use the 10% de-minimis cost rate under the Uniform Administrative Requirements. Note 6 The School District receives certain federal grants as subawards from non-federal entities. Passthrough entities, where applicable, have been identified in the Schedule with an abbreviation, defined as follows: Pass-through Agency Abbreviation Pass-through Agency Name GCRC Groundwork Center for Resilient Communities MFF Michigan Fitness Foundation MDE Michigan Department of Education NWMCOG Northwest Michigan Council of Governments WMISD Wexford-Missaukee Intermediate School District NMCAA Northwest Michigan Community Action Agency EUPISD Eastern Upper Peninsula Intermediate School District MDHHS Michigan Department of Health and Human Services De Minimis Rate Used: N Rate Explanation: The School District did not use the 10% de-minimis cost rate under the Uniform Administrative Requirements.