The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal grant activity of Community Action Agency of South Central Michigan under programs of the federal government for the year ended December 31, 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 (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of Community Action Agency of South Central Michigan, it is not intended to and does not present the financial position, changes in net assets or cash flows of Community Action Agency of South Central 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. 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 entity identifying numbers are presented where available. The Agency does not pass through federal funds.
The Agency has elected to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance.
Non-cash assistance (USDA food items) is reported in the schedule using a value determined by the U.S. Department of Agriculture.
The following reconciles the grant revenues reported in the December 31, 2025 statement of activities to the expenditures of the federal programs reported on the schedule of expenditures of federal awards. Federal grants $ 17,969,818 Contributions of nonfinancial assets Commodity food received 953,531 $ 18,923,349
Contributions of nonfinancial assets were received for the following federal program/activities for the year ended December 31, 2025: Child education activities: Head Start and Early Head Start $ 2,153,111 Senior services: Foster Grandparent/Senior Companion Cluster 12,011 Commodities: Food Distribution Cluster 953,531 Total contributions of nonfinancial assets $ 3,118,653 Of the total federal contributions of nonfinancial assets reported above, $1,151,951 is recognized in the accompanying financial statements because it meets the criteria as established by GAAP.
The Agency receives certain federal grants as subawards from non-federal entities. Pass-through entities, where applicable, have been identified in the Schedule with an abbreviation, defined as follows: Pass-through Agency Abbreviation Pass-through Agency Name BC City of Battle Creek MDE Michigan Department of Education MDHHS Michigan Department of Health and Human Services MDOT Michigan Department of Transportation MSU Michigan State University