Notes to SEFA
The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal award activity of Dearborn Heights School District No. 7 under programs of the federal government for the year ended June 30, 2025. 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). Because the Schedule presents only a selected portion of the operations of Dearborn Heights School District No. 7, it is not intended to and does not present the financial position or changes in net position of Dearborn Heights School District No. 7. The District qualifies for low-risk auditee status. Management has utilized the NexSys Cash Management System and the Grant Auditor Report in preparing the Schedule of Expenditures of Federal Awards.
Expenditures reported on the Schedule are reporting on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts (if any) shown on the schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Pass-through identifying numbers are present where available. Dearborn Heights School District No. 7 has elected to not use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The District does not pass through federal funds.
Federal expenditures are reported as revenue in the following funds in the financial statements: General fund $ 3,681,140 Other nonmajor governmental funds 1,601,287 Expenditures per schedule of expenditures of federal awards $ 5,282,427
Adjustments were made for Assistance Listing #10.533 ($30) and #10.559 ($30) for changes in allocation across Child Nutrition Cluster programs. Adjustments were made for Assistance Listing #84.365 ($3,210) and #84.424 ($3,240) for changes to the approved draw amount for the receivable associated with these grants.