Audit 44028

Title: Reconciliation to Financial Statements Accounting Policies: 1. Basis of PresentationThe accompanying schedule of expenditures of federal awards (the Schedule) includes the federalaward activity of Integrated Services of Kalamazoo (the Authority) under programs of the federalgovernment for the year ended September 30, 2022. The information in this Schedule is presentedin accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, UniformAdministrative Requirements, Cost Principles, and Audit Requirements for Federal Awards(Uniform Guidance). Because the Schedule presents only a selected portion of the operations of theAuthority, it is not intended to and does not present the financial position, changes in net positionor cash flows of the Authority.2. Summary of Significant Accounting PoliciesExpenditures reported on the Schedule are reported on the accrual basis of accounting. Suchexpenditures 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. Passthroughentity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Year ended September 30, 2022Federal and state grants per financial statements$23,606,501Less: state grants (5,110,402)Expenditures of Federal Awards $18,496,099