Audit 332080

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, 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 Expenditures on the Schedule of Expenditures of Federal Awards agrees with Federal revenue sources reported in the financial statements. Note 6 At June 30, 2023, ending accrued revenue was $806,917 which included accrued revenue that was adjusted as a prior period restatement for Federal revenue not received: Assistance Listing Number 84.010, program 201530-2223 $ 345,943 Assistance Listing Number 84.367, program 210520-2223 21,395 Assistance Listing Number 84.424A, program 220750-2223 28,414 Total prior period restatement of accrued revenue $ 395,752 Note 7 At June 30, 2023, ending accrued revenue of $806,917 did not include amounts for Assisting Listing Number 10.185 which was misclassified as State accrued revenue. These amounts were included as an adjustment to July 1, 2023 accrued revenue on the June 30, 2024 Schedule of Expenditures of Federal Awards. $ 5,433 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.