Notes to SEFA
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, reconcile to the Grant Section
Auditor’s Report (R7120). Unreconciled differences have been disclosed to the auditor.
Note 4 The School District did not use the 10% de minimis indirect cost rate allowed under the
Uniform Guidance.
Note 5 A reconciliation of expenditures on the Schedule of Expenditures of Federal Awards’ sources
on the financial statements is as follows:
Federal expenditures per Schedule of
Expenditures of Federal Award $ 3,091,405
Payments in lieu of taxes 16,300
Federal sources per financial statements $ 3,107,705
De Minimis Rate Used: N
Rate Explanation: The School District did not use the 10% de minimis indirect cost rate allowed under the
Uniform Guidance.