Notes to SEFA
Accounting Policies: Note A — Basis of Presentation:
The accompanying schedule of expenditures of federal awards includes the federal grant activity of
South Central Regional Council of Governments, and is presented on the accrual basis of accounting.
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). The schedule presents only a selected
portion of the operations of South Central Regional Council of Governments. It is not intended to,
and does not present, the financial position or changes in net assets of South Central Regional
Council of Governments.
Note B — Summary of Significant Accounting Policies:
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.
De Minimis Rate Used: Both
Rate Explanation: The South Central Regional Council of Governments uses an indirect cost rate as required under
their Unified Planning Work Program agreement (UPWP) with the Connecticut Department of
Transportation, the Federal Highway Administration and the Federal Transit Administration. The
UPWP provides for a provisional indirect cost rate for reimbursements during the year with a
recalculation at the end of the year to an actual amount and retroactive application to all requests
during the year. The indirect cost rate for the year ended June 30, 2023, was 143.21%.
The Economic Adjustment Assistance, CFDA 11.307, utilizes the 10 percent de minimis indirect cost
rate.
Expenditures are recognized following the cost principles prescribed by Uniform Guidance wherein
certain types of expenditures are not allowed or are limited as to reimbursement.