Title: Basis of Presentation
Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principals contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts 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.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 incurred and all grant requirements have been met.The Cheboygan-Otsego-Presque Isle Educational Service District has formatted the Schedule to conform to the recommendations of the Michigan Department of Education. The Schedule has been arranged to provide information on both 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 end of the fiscal year have been reported.
De Minimis Rate Used: N
Rate Explanation: The Cheboygan-Otsego-Presque Isle Educational Service District has not elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.
The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal award activity of the Cheboygan-Otsego-Presque Isle Educational Service District under programs of the federal government for the year ended June 30, 2022. 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 Principals, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Cheboygan-Otsego-Presque Isle Educational Service District it is not intended to and does not present the financial position, changes in net position, or cash flows of the Cheboygan-Otsego-Presque Isle Educational Service District.
Title: Relationship to Governmental Fund Financial Statements
Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principals contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts 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.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 incurred and all grant requirements have been met.The Cheboygan-Otsego-Presque Isle Educational Service District has formatted the Schedule to conform to the recommendations of the Michigan Department of Education. The Schedule has been arranged to provide information on both 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 end of the fiscal year have been reported.
De Minimis Rate Used: N
Rate Explanation: The Cheboygan-Otsego-Presque Isle Educational Service District has not elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.
Revenues from federal sources are reported in the Educational Service District's financial statements as follows:FederalGrant Auditor Report - (GAR) NexSysRevenuesGeneral Fund $175,569 Special Revenue Funds:Special Education Fund 2,787,380 Total federal revenues per financial statements $2,962,949 Federal revenues from FICA refunds reported on the audited financial statements at June 30, 2022 and not reported as grantsin the schedule of expenditures of federal awards (SEFA) 37,387 Rounding 1 Total expenditures per the Schedule of Expenditures of Federal Awards (SEFA) $2,925,561
Title: Grant Auditor Report
Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principals contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts 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.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 incurred and all grant requirements have been met.The Cheboygan-Otsego-Presque Isle Educational Service District has formatted the Schedule to conform to the recommendations of the Michigan Department of Education. The Schedule has been arranged to provide information on both 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 end of the fiscal year have been reported.
De Minimis Rate Used: N
Rate Explanation: The Cheboygan-Otsego-Presque Isle Educational Service District has not elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.
Management has utilized the Michigan Department of Educations NexSys grant management systems Grant Auditor Report (GAR) in preparing the schedule of expenditures of federal awards.
Title: Reconciliation to Michigan Department of Educations NexSys Grant Auditors
Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principals contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts 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.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 incurred and all grant requirements have been met.The Cheboygan-Otsego-Presque Isle Educational Service District has formatted the Schedule to conform to the recommendations of the Michigan Department of Education. The Schedule has been arranged to provide information on both 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 end of the fiscal year have been reported.
De Minimis Rate Used: N
Rate Explanation: The Cheboygan-Otsego-Presque Isle Educational Service District has not elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.
The following shows a reconciliation of current year receipts per the Schedule of Expenditures of Federal Awards to current payments per the Michigan Department of Education NexSys Grant Auditor Report:Agency total current payments per Michigan Department of EducationGrant Auditor Report - (GAR) NexSys $2,577,072 Add items not on NexSys report:Amounts received through Michigan Department of Social Services and Michigan Department of Public Health:Medicaid Outreach 50,855 Amounts received as a Direct award from the U.S. Department of Education:Small Rural School Achievement 8,434 Total current year receipts (cash basis) per the Schedule of Expenditures of Federal Awards (SEFA) $2,636,361