Title: Note 1 - Summary of Significant Accounting Policies
Accounting Policies: The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal grant activity of Memphis Community Schools (the “School District”) for the year ended June 30, 2024. Expenditures reported on the Schedule are reported on the same basis of accounting, the modified accrual basis, as the financial statements, although the basis for determining when federal awards are expended 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), wherein certain types of expenditures are not allowable or are limited as to reimbursement. Therefore, some amounts presented in this Schedule may differ from amounts presented in, or used in the preparation of, the financial statements.
Because the Schedule presents only a selected portion of the operations of the School District, it is not intended to and does not present the financial position or changes in net position of the School District.
The School District passes a certain amount of these federal awards to other local governments and agencies (subrecipients) who provide the actual program services. These awards passed through to subrecipients are presented on the Schedule by the School District in the period program services are provided.
For purposes of charging indirect costs to federal awards, the School District has not elected to use the 10% de minimis cost rate.
The School District administers a number of federal grants, which are paid under reimburse¬ment arrangements in which the School District bills the Michigan Department of Education (MDE) or other pass-through grantors for allowable costs incurred. The programs identi¬fied on the Schedule are reported in the General and Special Revenue Funds of the School District.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal grant activity of Memphis Community Schools (the “School District”) for the year ended June 30, 2024. Expenditures reported on the Schedule are reported on the same basis of accounting, the modified accrual basis, as the financial statements, although the basis for determining when federal awards are expended 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), wherein certain types of expenditures are not allowable or are limited as to reimbursement. Therefore, some amounts presented in this Schedule may differ from amounts presented in, or used in the preparation of, the financial statements.
Because the Schedule presents only a selected portion of the operations of the School District, it is not intended to and does not present the financial position or changes in net position of the School District.
The School District passes a certain amount of these federal awards to other local governments and agencies (subrecipients) who provide the actual program services. These awards passed through to subrecipients are presented on the Schedule by the School District in the period program services are provided.
For purposes of charging indirect costs to federal awards, the School District has not elected to use the 10% de minimis cost rate.
The School District administers a number of federal grants, which are paid under reimburse¬ment arrangements in which the School District bills the Michigan Department of Education (MDE) or other pass-through grantors for allowable costs incurred. The programs identi¬fied on the Schedule are reported in the General and Special Revenue Funds of the School District.
Title: Note 2 - Noncash Assistance
Accounting Policies: The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal grant activity of Memphis Community Schools (the “School District”) for the year ended June 30, 2024. Expenditures reported on the Schedule are reported on the same basis of accounting, the modified accrual basis, as the financial statements, although the basis for determining when federal awards are expended 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), wherein certain types of expenditures are not allowable or are limited as to reimbursement. Therefore, some amounts presented in this Schedule may differ from amounts presented in, or used in the preparation of, the financial statements.
Because the Schedule presents only a selected portion of the operations of the School District, it is not intended to and does not present the financial position or changes in net position of the School District.
The School District passes a certain amount of these federal awards to other local governments and agencies (subrecipients) who provide the actual program services. These awards passed through to subrecipients are presented on the Schedule by the School District in the period program services are provided.
For purposes of charging indirect costs to federal awards, the School District has not elected to use the 10% de minimis cost rate.
The School District administers a number of federal grants, which are paid under reimburse¬ment arrangements in which the School District bills the Michigan Department of Education (MDE) or other pass-through grantors for allowable costs incurred. The programs identi¬fied on the Schedule are reported in the General and Special Revenue Funds of the School District.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The value of the noncash assistance (commodities) received was determined in accordance with the provisions of the Uniform Guidance. The Recipient Entitlement Balance Report is utilized to determine the value of commodities distributed to the School District.
Title: Note 3 - Cash Management System and Grant Auditor Report Utilization
Accounting Policies: The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal grant activity of Memphis Community Schools (the “School District”) for the year ended June 30, 2024. Expenditures reported on the Schedule are reported on the same basis of accounting, the modified accrual basis, as the financial statements, although the basis for determining when federal awards are expended 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), wherein certain types of expenditures are not allowable or are limited as to reimbursement. Therefore, some amounts presented in this Schedule may differ from amounts presented in, or used in the preparation of, the financial statements.
Because the Schedule presents only a selected portion of the operations of the School District, it is not intended to and does not present the financial position or changes in net position of the School District.
The School District passes a certain amount of these federal awards to other local governments and agencies (subrecipients) who provide the actual program services. These awards passed through to subrecipients are presented on the Schedule by the School District in the period program services are provided.
For purposes of charging indirect costs to federal awards, the School District has not elected to use the 10% de minimis cost rate.
The School District administers a number of federal grants, which are paid under reimburse¬ment arrangements in which the School District bills the Michigan Department of Education (MDE) or other pass-through grantors for allowable costs incurred. The programs identi¬fied on the Schedule are reported in the General and Special Revenue Funds of the School District.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The School District utilizes the MDE NexSys and Grant Auditor Report (GAR) in preparing the Schedule.