Audit 20158

Title: Note 3 Program Costs Accounting Policies: This Schedule is prepared on the same basis of accounting as the Councils financial statements. The Whatcom Council of Governments uses single-entry, cash basis accounting. Revenues are recognized when cash is received, and expenditures are recognized when paid. De Minimis Rate Used: N Rate Explanation: The Council has not elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The amount expended includes $240,107 claimed as an indirect cost recovery using an approved indirect cost rate of 48.10 percent.The amount expended also includes $340,043 claimed as fringe benefit cost recovery using an approved fringe benefit cost rate of 68.12 percent. The amounts shown as current year expenditures represent only the federal grant portion of the program costs. Entire program costs, including the Councils portion, are more than shown. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement.