Audit 12804

Title: Note 1 Accounting Policies: SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The Schedule of Expenditures of Federal Awards is prepared using the accrual basis of accounting. Measurement Focus The determination of when an award is expended is based on when the activity related to the award occurred. Program Type Determination Type A programs are defined as federal programs with federal expenditures exceeding $750,000. The threshold of $750,000 was used in distinguishing between Type A and Type B programs. Method of Major Program Selection The risk-based approach was used in the selection of federal programs to be tested as major programs. The Authority qualified as a low-risk auditee for the fiscal year ended June 30, 2023. De Minimis Indirect Cost Rate During the year ended June 30, 2023, the Authority did not use the de Minimis indirect cost rate. The Authority charges indirect costs to all federal programs using a cognizant agency approved indirect cost rate. The Federal Transit Administration approved a 34.52% fixed indirect cost rate subject to annual carryforward adjustments on March 31, 2017. The Authority’s adjusted rate was 24.73% for the period covering July 1, 2022 through December 31, 2022, and 32.90% for the period covering January 1, 2023 through June 30, 2023. The rate is applied to direct labor and benefits. Common Cost Methodology The Authority allocates transportation expenses attributable to more than one program to the Section 5307 and 5311 programs. Expenses are allocated based on revenue miles and hours in line with a South Carolina Department of Transportation Office of Public Transit authorized methodology. There were no changes to routes from the prior year. De Minimis Rate Used: N Rate Explanation: During the year ended June 30, 2023, the Authority did not use the de Minimis indirect cost rate. The Authority charges indirect costs to all federal programs using a cognizant agency approved indirect cost rate. The Federal Transit Administration approved a 34.52% fixed indirect cost rate subject to annual carryforward adjustments on March 31, 2017. The Authority’s adjusted rate was 24.73% for the period covering July 1, 2022 through December 31, 2022, and 32.90% for the period covering January 1, 2023 through June 30, 2023. The rate is applied to direct labor and benefits. SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The Schedule of Expenditures of Federal Awards is prepared using the accrual basis of accounting. Measurement Focus The determination of when an award is expended is based on when the activity related to the award occurred. Program Type Determination Type A programs are defined as federal programs with federal expenditures exceeding $750,000. The threshold of $750,000 was used in distinguishing between Type A and Type B programs. Method of Major Program Selection The risk-based approach was used in the selection of federal programs to be tested as major programs. The Authority qualified as a low-risk auditee for the fiscal year ended June 30, 2023. De Minimis Indirect Cost Rate During the year ended June 30, 2023, the Authority did not use the de Minimis indirect cost rate. The Authority charges indirect costs to all federal programs using a cognizant agency approved indirect cost rate. The Federal Transit Administration approved a 34.52% fixed indirect cost rate subject to annual carryforward adjustments on March 31, 2017. The Authority’s adjusted rate was 24.73% for the period covering July 1, 2022 through December 31, 2022, and 32.90% for the period covering January 1, 2023 through June 30, 2023. The rate is applied to direct labor and benefits. Common Cost Methodology The Authority allocates transportation expenses attributable to more than one program to the Section 5307 and 5311 programs. Expenses are allocated based on revenue miles and hours in line with a South Carolina Department of Transportation Office of Public Transit authorized methodology. There were no changes to routes from the prior year.