Notes to SEFA
Title: BASIS OF PRESENTATION
Accounting Policies: Expenditures reported on the Schedule of Expenditures of Federal Awards are reported on the accrual basis of
accounting. Such expenses 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. Negative amounts
(if any) shown on the Schedule of Expenditures of Federal Awards represent adjustments or credits made in the
normal course of business to amounts reported as expenses in prior years.
De Minimis Rate Used: N
Rate Explanation: The Commission has elected not to use the 10-percent de minimis
indirect cost rate allowed under the Uniform Guidance.
The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of Isabella
County Transportation Commission (the Commission) 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). Therefore, some amounts presented in this schedule may differ from amounts
presented in or used in the preparation of the basic financial statements, which are reconciled in Note 4.
Title: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Accounting Policies: Expenditures reported on the Schedule of Expenditures of Federal Awards are reported on the accrual basis of
accounting. Such expenses 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. Negative amounts
(if any) shown on the Schedule of Expenditures of Federal Awards represent adjustments or credits made in the
normal course of business to amounts reported as expenses in prior years.
De Minimis Rate Used: N
Rate Explanation: The Commission has elected not to use the 10-percent de minimis
indirect cost rate allowed under the Uniform Guidance.
Expenditures reported on the Schedule of Expenditures of Federal Awards are reported on the accrual basis of
accounting. Such expenses 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. Negative amounts
(if any) shown on the Schedule of Expenditures of Federal Awards represent adjustments or credits made in the
normal course of business to amounts reported as expenses in prior years. Pass-through entity identifying
numbers are presented where available. The Commission has elected not to use the 10-percent de minimis
indirect cost rate allowed under the Uniform Guidance.
Title: SUBRECIPIENTS
Accounting Policies: Expenditures reported on the Schedule of Expenditures of Federal Awards are reported on the accrual basis of
accounting. Such expenses 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. Negative amounts
(if any) shown on the Schedule of Expenditures of Federal Awards represent adjustments or credits made in the
normal course of business to amounts reported as expenses in prior years.
De Minimis Rate Used: N
Rate Explanation: The Commission has elected not to use the 10-percent de minimis
indirect cost rate allowed under the Uniform Guidance.
No federal awards were passed through by the Commission to any subrecipients during the year.
Title: SUMMARY OF SIGNIFICANT EXPLANATIONS OF SCHEDULE
Accounting Policies: Expenditures reported on the Schedule of Expenditures of Federal Awards are reported on the accrual basis of
accounting. Such expenses 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. Negative amounts
(if any) shown on the Schedule of Expenditures of Federal Awards represent adjustments or credits made in the
normal course of business to amounts reported as expenses in prior years.
De Minimis Rate Used: N
Rate Explanation: The Commission has elected not to use the 10-percent de minimis
indirect cost rate allowed under the Uniform Guidance.
The following description cross references to amounts on the Schedule of Expenditures of Federal Awards:
(a) The schedule below reconciles the total Federal and State revenues reported in the financial statements
for the year ended September 30, 2023, to the expenditures reported in the Schedule of Expenditures of
Federal and State Awards.
Revenue per
Financial
Statements
Adjustments for
Prior Year
Reconciliations
Federal and
State Award
Expenditures
Federal $ 3,056,794 $ - $ 3,056,794
State 2 ,482,405 (5,661) 2 ,476,744
$ 5,539,199 $ (5,661) $ 5,533,538