Title: Basis of Presentation
Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, either the cost principles contained in the Uniform Guidance where certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years.
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 award activity of Eastpointe Community Schools under programs of the federal government for the year ended June 30, 2022. 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 Eastpointe Community Schools, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Eastpointe Community Schools.
Title: Reconciliation to the Financial Statements
Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, either the cost principles contained in the Uniform Guidance where certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
Federal revenues reported in the financial statements equal the expenditures reported on the SEFA, except for the following: Federal expenditures per SEFA: $12,165,093, Federal revenue classified as a beneficiary payment: $25,444, Prior year unavailable revenue recognized in the current year: $32,029, Current year unavailable revenue - deferred inflow: ($32,716), Federal revenue per financial statements: $12,189,850. Certain grants that were awarded as a result of COVID-19, allowed recipients to reimburse eligible costs incurred during the prior year ended June 30, 2021. Therefore, $155,163 of prior year expenditures related to 84.425D, Education Stabilization Funds are included in the June 30, 2022 Schedule of Expenditures or Federal Awards.
Title: Michigan Department of Education Disclosures
Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, either the cost principles contained in the Uniform Guidance where certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
Management has reported the expenditures in the SEFA equal to those amounts reported in the annual or final cost reports that have been submitted for that particular grant year. The federal amounts reported on the Grant Auditor Report (GAR) are in agreement with the SEFA, except for the following: AL #: 84.010, Grant Award: 221530, Amount per GAR: $1,612,582, Amount per SEFA: $1,275,358, Difference: $337,224, AL #: 84.367, Grant Award: 220520, Amount per GAR: $297,817, Amount per SEFA: $0, Difference: $297,817, AL #: 84.424, Grant Award: 220750, Amount per GAR: $113,341, Amount per SEFA: $0, Difference: $113,341, AL #: 84.425D, Grant Award: 203710, Amount per GAR: $1,429,754, Amount per SEFA: $1,194,321, Difference: $235,433, AL #: 84.425D, Grant Award: 213712, Amount per GAR: $4,580,206, Amount per SEFA: $0, Difference: $4,580,206, AL #: 84.425U, Grant Award: 213713, Amount per GAR: $873,067, Amount per SEFA: $0, Difference: $873,067. The amounts reported on the Recipient Entitlement Balance Report (PAL Report) agree with the SEFA for USDA donated food commodities.
Title: Subrecipients
Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, either the cost principles contained in the Uniform Guidance where certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
No amounts were provided to subrecipients.
Title: Adjustments
Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, either the cost principles contained in the Uniform Guidance where certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
Adjustments for AL# 84.027 grant 210450 of $639 and AL# 84.173 grant 210460 of $519, were included due to proportionate share payments deemed by the Intermediate School District not to be included on the SEFA. Adjustment for AL# 97.036 grant 20-21 was included due to prior year award amount deemed not likely to be received.