Notes to SEFA
Accounting Policies: Note 1: Basis of PresentationThe accompanying schedule of expenditures of federal and state awards (SEFSA) includes the federal and State grant activity of Onslow United Transit System, Inc. (OUTS) under the programs of the federal government and the State of North Carolina for the year ended June 30, 2022. The information in this SEFSA is presented in accordance with the requirements of Title 2 US Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards and OMB Circular A-122, Cost Principles for Nonprofit Organizations, and Subpart C, Cost Sharing and Matching, of OMB Circular A-110, Grants and agreements with Institutions of Higher Education, Hospitals, and Other Nonprofit Organizations and the State Single Audit Implementation Act. Because the Schedule presents only a selected portion of the operations of OUTS, it is not intended to and does not present the financial position, changes in net assets or cash flows of the organization.Note 2: Summary of Significant Accounting PoliciesExpenditures reported in the SEFSA are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.OUTS has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance.Note 3: Cluster of ProgramsThe following are clustered by the federal government: Enhanced Mobility of Seniors and Individuals with DisabilitiesThe following are clustered by the State government: Rural Operating Assistance Program
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.