The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of the County of Houghton, Michigan under programs of the federal government for the year ended September 30, 2024. 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 the County of Houghton, Michigan, it is not intended to and does not present the financial position, changes in net position, or cash flows of the County of Houghton, Michigan.
Expenditures reported on the Schedule are reported on the 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.
For purposes of charging indirect costs to federal awards, the County has not elected to use the 10% deminimus cost rate as permitted by CFR Section 200.414 of the Uniform Guidance.
The Michigan Department of Transportation (MDOT) requires that road commissions report all Federal and State grants pertaining to their county. During the fiscal year ended September 30, 2024, the Federal aid expended by the Road Commission was $2,327,956 for contracted projects. Contracted projects are defined as projects performed by private contractors paid for and administrated by MDOT. The contracted Federal projects are not subject to single audit requirements by the road commission and airport, as they are included in MDOT's Single Audit. Negotiated projects are defined as projects performed by Road Commission employees or private contractors paid for and administrated by the Road Commission and are subject to a single audit if the expenditures exceed $750,000.
There were no awards passed through to subrecipients.
The following is a reconciliation of the amounts reported on the basic financial statements to the Schedule of Expenditures of Federal Awards: Total Federal Sources per Financial Statement - Primary Government $944,265. Federal Grants of Component Units $3,638,844, Total Federal Revenue Recognized per Schedule of Expenditures of Federal Awareds $4,583,109