Audit 34787

Title: RECONCILIATION OF FEDERAL AWARDS TO EXPENDITURE OF FEDERAL AWARDS Accounting Policies: All federal grant operations of Moriarty-Edgewood School District No. 8 (the District) are included in the scope of the Office ofManagement and Budget (OMB) Uniform Grant Guidance audit (the Single Audit). The Single Audit was performed in accordancewith the provisions of the OMB Circular Compliance Supplement (Revised April 2022 the Compliance Supplement). Compliance testingof all requirements are described in the Compliance Supplement, was performed for the grants programs noted below. These programsrepresent all federal award programs and other grants with fiscal year 2022 cash and non-cash expenditures to ensure coverage of at least20% (LOW risk auditee) of federally granted funds. Actual coverage is approximately 69% of total cash and non-cash federal award programexpenditures. Total cash expenditures were in the amount of $4,970,341 and all non-cash expenditures amounted to $101,557. MAJOR FEDERAL PROGRAM ASSISTANCE NO. EXPENDITURESCOVID: CARES Act, CRRSA, ARP Act 84.425 D & U $ 1 ,861,689Special Education (IDEA) Cluster 84.027 & 84.173 9 44,091Title I Grants To Local Educational Agencies 84.010 7 04,095Total $ 3,509,875 The District had two federal programs considered to be a High-Risk Type A program for the year ended June 30, 2022.The U.S. Department of Education is the Districts oversight agency for single audit.Basis of presentationThe accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal grant activity of the District underprograms of the federal government for the year ended June 30, 2022. The information in this schedule is presented in accordance with the requirements of the Office of Management and Budget (OMB) Uniform Grant Guidance. Because the Schedule presents only a selectedportion of the operations of the District, it is not intended to and does not present the financial position and changes in net position of the District. All federal programs considered active during the year ended June 30, 2022, are reflected on the Schedule. An active federal program is defined as a federal program for which there were receipts or disbursements of funds or accrued (deferred) grant revenue adjustments during the fiscal year or a federal program considered as not completed or closed out at the beginning of the fiscal year. The Schedule is prepared using the accrual basis of accounting. Grant revenues are recorded for financial reporting purposes when the District has met the qualifications for the respective grant. Grant revenues for the Food Donation Program are based upon commodities received, at amounts per standard price listing, published quarterly by the United States Department of Agriculture (the USDA). In addition, there is no federal insurance in effect during the year and loan or loan guarantee outstanding at year end.Accrued and deferred reimbursementsVarious reimbursement procedures are used for Federal awards received by the District. Consequently, timing differences betweenexpenditures and program reimbursements can exist at the beginning and end of the year. Accrued balances at year end represent an excess of reimbursable expenditures over receipts to date. Deferred balance at year-end represent an excess of cash receipts over reimbursable expenditure to date. Generally, accrued or deferred balances covered by differences in the timing of cash receipts and expenditures will be reversed in the remaining grant period. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The District uses 3.25% indirect cost rate as determined by NewMexico Public Education Department. The differences between the federal awards received (Intergovernmental sources federal) during the year ended June 30, 2022 and thefederal awards expended during the year are as follows BALANCEIntergovernmental - federal sources $ 6 ,103,588Indirect costs from federal programs ( 112,194)Unexpended federal sources from current year ( 403,133)Prior year federal sources expended ( 458)Unavailable federal reimbursements 4 7,578Revenues received as vendor ( 563,483)Total Expenditures of Federal Awards $ 5 ,071,898