Audit 339033

Title: NOTE 1 - SUMMARY OF SIGNIFCIANT ACCOUNTING POLICIES: Accounting Policies: The accompnaying schedule of expenditures of federal awards (the "Schedule") includes the federal grant activity of GST Michigan Works (the "Agency) 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. De Minimis Rate Used: N Rate Explanation: For purposes of charging indirect costs to federal awards, the Agency has not elected to use the 10% de minimis cost rate. Because the Schedule presents only a selected portion of the operations of the Agency, it is not intended to and does not present the fianncial position or changes in financial position of the Agency. The accompnaying schedule of expenditures of federal awards (the "Schedule") includes the federal grant activity of GST Michigan Works (the "Agency) 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. Revenue has been accreud at June 30, 2024 to match allowable expenditures incurred during the year for each program. Grant funds received in advance that are in excess of incurred costs have been reflected as unearned revenue. For purposes of charging indirect costs to federal awards, the Agency has not elected to use the 10% de minimis cost rate. Because the Schedule presents only a selected portion of the operations of the Agency, it is not intended to and does not present the fianncial position or changes in financial position of the Agency.