Notes to SEFA
Title: Basis of Presentation
Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, the cost principles contained in the Uniform Guidance where certain types of expenditures are not allowable or are limited as to reimbursement.The Legal Service Corporation Basic Field Grant details $ 953,552 of current period expenditures. Theseexpenditures are presented net of the spending of derivative income attributable to the grant of $ 7,490.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Legal Services of Northern Michigan under programs of the federal government for the year ended December 31, 2022. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Codeof 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 Legal Services of Northern Michigan, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Legal Services of Northern Michigan.
Title: Reconciliation to the Financial Statements
Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, the cost principles contained in the Uniform Guidance where certain types of expenditures are not allowable or are limited as to reimbursement.The Legal Service Corporation Basic Field Grant details $ 953,552 of current period expenditures. Theseexpenditures are presented net of the spending of derivative income attributable to the grant of $ 7,490.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
Federal expenditures reported on the Schedule reconcile to federal revenues included in grants and contracts in the financial statements as follows: See table at the Notes to the Schedule of Expenditures of Federal Awards.
Title: Pass-Through Agencies
Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, the cost principles contained in the Uniform Guidance where certain types of expenditures are not allowable or are limited as to reimbursement.The Legal Service Corporation Basic Field Grant details $ 953,552 of current period expenditures. Theseexpenditures are presented net of the spending of derivative income attributable to the grant of $ 7,490.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The organization 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: See table at the Notes to the Schedule of Expenditures of Federal Awards.
Title: Subrecipients
Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, the cost principles contained in the Uniform Guidance where certain types of expenditures are not allowable or are limited as to reimbursement.The Legal Service Corporation Basic Field Grant details $ 953,552 of current period expenditures. Theseexpenditures are presented net of the spending of derivative income attributable to the grant of $ 7,490.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
No amounts were provided to subrecipients.