Notes to SEFA
The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal grant activity of the Muskegon Heights Public School Academy System (the “Academy”) under programs of the federal government for the year ended June 30, 2024. 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 Academy.
Expenditures reported on the Schedule are reported on the accrual basis of accounting, which is described in Note 1 to the Academy'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 modified 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 Academy has elected not to use the 10-percent de minimis indirect cost rate to recover indirect costs as allowed under the Uniform Guidance.
The Academy received noncash assistance in the form of USDA donated food commodities under the National School Lunch Program (ALN 10.555). The value of these commodities was determined based on fair market values provided by the Michigan Department of Education and is included in the Schedule of Expenditures of Federal Awards.
Federal sources of $3,208,228 on the governmental funds statement of revenues, expenditures, and changes in fund balance reconciles with the current year federal expenditures reported on the Schedule.