The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of the County of Chippewa, 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 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 Chippewa, Michigan, it is not intended to and does not present the financial position, changes in net position, or cash flows of the County of Chippewa, Michigan. All expenditures of federal awards from component units are included in the schedule.
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 15% 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 year ended December 31, 2025, the Federal aid received and expended by the Road Commission was $5,964,474 for contracted projects. Contracted projects are defined as projects performed by private contractors paid for and administrated by MDOT (they are included in MDOT’s single audit). The Federal aid received and expended by the Road Commission was $0 for negotiated projects. Negotiated projects are projects where the road commission administers the grant and either performs the work or contracts it out. The Road Commission would be subject to single audit requirements if they expended $1,000,000. The Road Commissions single audit is completed and reported as part of the audit of Chippewa County, Michigan. During fiscal 2025, the Economic Development Corporation received significant funding in the form of federal and state awards. The U.S. Department of Transportation awarded grants in the amount of $2,786,880 for airport improvements and operations. Some grants are administered by the Michigan Department of Transportation. A direct award was also received from the U.S. Department of Commerce in the amount of $2,128,559. The grants are reported in the Single Audit Section of the County of Chippewa, Michigan compliance reports.
The following is a reconciliation of the amounts reported on the basic financial statements to the schedule of expenditures of federal awards: Total Federal per Financial Statements Revenues - Primary Government $2,068,337. ADD: Component Unit Federal Expenditures $6,796,618 and Trust and Agency $239,828. Total Federal Revenue Recognized per Schedule of Expenditures of Federal Awards $9,104,783.