Audit 51941

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 $ 1,727,366 of current period expenditures. These expenditures are presented net of expenditures toward derivative income of $ 453 for interest income. 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 Eastern 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. 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 Legal Services of Eastern Michigan, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Legal Services of Eastern 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 $ 1,727,366 of current period expenditures. These expenditures are presented net of expenditures toward derivative income of $ 453 for interest income. 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: Grant and contract revenue, per financial statements: $4,629,854, Less non-federal portion: ($1,702,404), Total federal expenditures per the Schedule: $2,927,450.

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 $ 1,727,366 of current period expenditures. These expenditures are presented net of expenditures toward derivative income of $ 453 for interest income. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. No amounts were provided to subrecipients.