Title: SINGLE AUDIT REPORTING ENTITY
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 UniformGuidance, wherein certain types of expenditures are not allowable or are limited as toreimbursement. Pass-through identifying numbers are presented where available andapplicable.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The Metropolitan Washington Council of Governments (MWCOG) is an independent,nonprofit association with a membership of elected officials from 24 local governments, theMaryland and Virginia state legislatures, and U.S. Congress. It serves as a hub for regionalpartnership, sharing information and developing solutions to the regions major challenges.
Title: BASIS OF ACCOUNTING
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 UniformGuidance, wherein certain types of expenditures are not allowable or are limited as toreimbursement. Pass-through identifying numbers are presented where available andapplicable.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The accompanying schedule of expenditures of federal awards (the Schedule) includes thefederal award activity of Metropolitan Washington Council of Governments (MWCOG) underprograms of the federal government for the year ended June 30, 2021. The information inthis Schedule is presented in accordance with the requirements of Title 2 U.S. Code ofFederal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, andAudit Requirements for Federal Awards (Uniform Guidance). Because the Schedulepresents only a selected portion of the operations of MWCOG, it is not intended to and doesnot present the financial position or changes in financial position of MWCOG.Federal Financial Assistance The Single Audit Act Amendments of 1996 (Public Law 104-156) and Uniform Guidance define federal financial assistance as grants, loans, loanguarantees, property (including donated surplus property), cooperative agreements, interestsubsidies, insurance, food commodities, direct appropriations, or other assistance.Direct Payments Assistance received directly from the federal government is classified asdirect payments on the Schedule.Pass-through Payments Assistance received in a pass-through relationship from entitiesother than the federal government is classified as pass-through payments on the Schedule.Major Programs The Single Audit Act Amendments of 1996 and Uniform Guidanceestablish the criteria to be used in defining major programs. Major programs for MWCOGwere determined using a risk-based approach in accordance with Uniform Guidance.
Title: INDIRECT COST RATE
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 UniformGuidance, wherein certain types of expenditures are not allowable or are limited as toreimbursement. Pass-through identifying numbers are presented where available andapplicable.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
MWCOGs indirect cost rates as allowed under the Uniform Guidance are disclosed inNote 1, Fringe Benefit and Indirect Cost Allocations in the notes to financial statements.
Title: CONTRACTS WITH STATE AND LOCAL GOVERNMENTS CONTAINING FEDERAL FUNDS
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 UniformGuidance, wherein certain types of expenditures are not allowable or are limited as toreimbursement. Pass-through identifying numbers are presented where available andapplicable.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
Under ? 200.331, Subrecipient and Contractor Determinations of 2 CFR Part 200, UniformGuidance explains that MWCOG may concurrently receive federal awards as a recipient, asubrecipient, and a contractor on the substance of its agreements with federal awardingagencies and pass-through entities. Therefore, a case-by-case determination of whethereach agreement casts MWCOGs role as a subrecipient or a contractor is required to ensurethe completeness of the Schedule. MWCOG enters into several agreements where therelationship has been determined, based on ? 200.331(b), to be a contractor to provideservices to federal programs where state and local governments are responsible forcompliance with the federal program requirements. Those programs are excluded from theSchedule. These agreements do not have the characteristics of subrecipients, based on? 200.331(a) and appropriate notification under ? 200.211, Information Contained in aFederal Award was not made.