Notes to SEFA
The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal grant activity of Manistee Area Public Schools (the “School District”) 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 (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Because the schedule presents only a selected portion of the operations of the District, it is not intended to and does not present the financial position, changes in net position, or cash flows of the School District.
Expenditures reported on the Schedule are reported on the accrual basis of accounting, which is described in Note 1 to the School District's financial statements. 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. Pass-through entity identifying numbers are presented where applicable and have been identified in the Schedule. Cash received is recorded on the cash basis; expenditures are recorded on the accrual basis of accounting. Revenues are recognized when the qualifying expenditures have been included and all grant requirements have been met. The Schedule has been arranged to provide information on both the actual cash received and the revenue recognized. Accordingly, the effects of accruals of accounts receivable, unearned revenue, and accounts payable items at both the beginning and the end of the fiscal year have been reported. Expenditures are in agreement with amounts reported in the financial statements and the grant financial reports. The amounts on the Grant Auditor Report reconcile with this Schedule. The School District has elected not to use the 10-percent de minimis indirect cost rate to recover indirect costs as allowed under the Uniform Guidance.
During the year ended June 30, 2025, the School District received federal noncash assistance in the form of U.S. Department of Agriculture (USDA) donated food commodities through the National School Lunch Program (Assistance Listing 10.555). The total value of commodities received and used during the year was $45,348, as determined by the Michigan Department of Education based on USDA valuation rates. These donated commodities are recognized as federal expenditures when used in program operations and are included in the accompanying Schedule of Expenditures of Federal Awards (SEFA) under Assistance Listing 10.555. No other forms of noncash federal assistance - such as insurance in force, loan guarantees, or donated property - were received by the School District during the year.
The following schedule reconciles federal revenues reported in the fund financial statements to the federal expenditures reported in the Schedule: SEE PAGE 69 OF THE PDF.