Audit 290653

Title: (2) Reconciliation to Financial Statements Accounting Policies: The Southeastern Pennsylvania Transportation Authority (the Authority) was formed in 1964 as a separate body corporate and politic, exercising the public power of the Commonwealth of Pennsylvania as an agency and instrumentality thereof. Beginning in Fiscal Year 2008, The Authority operates pursuant to the provisions of Act 44 of 2007, which in the process repealed the provisions of the Pennsylvania Public Transportation Law, Act 26 of 1991, as amended by Act 3 of 1994. On November 25, 2013 the Governor signed into law Act 89 of 2013. This law, which amended Act 44 of 2007, became effective January 1, 2014. The Authority is not financially accountable for another entity, as described in Governmental Accounting Standards Board Statement No. 61, The Financial Reporting Entity: Omnibus–an amendment of GASB Statements No. 14 and No. 34. Therefore, there are no other organizations included in the Authority’s reporting entity. The accompanying Schedule of Expenditures of Federal Awards presents the activity of all federal financial assistance programs of the Authority’s reporting entity as defined in note 1 to the Authority’s basic financial statements. Expenditures incurred under grants received directly and indirectly from the federal agencies are included on the Schedule of Expenditures of Federal Awards. The Authority’s basic financial statements and the Schedule of Expenditures of Federal Awards have been prepared using the accrual basis of accounting in conformity with accounting principles generally accepted in the United States of America. The Authority did not use the 10% de minims indirect cost rate. De Minimis Rate Used: N Rate Explanation: N/A Entity did not use the de minimis cost rate. The amounts on the accompanying Schedule of Expenditures of Federal Awards are reconciled to the amounts of federal expenditures reported on the Authority’s basic financial statements as follows: Operating funds: Federal operating revenue as reported in the basic financial statements and within the accompanying schedule $ 419,370 Capital and technical funds: Total funds recorded as capital grants in the basic financial statements 442,272 Less state, local, and other contributions (258,051) Add direct technical assistance, management training and other specific contributions used to fund applicable expenditures 3,294 Add indirect grants 9,348 *Total federal expenditures/revenues as reported on the accompanying schedule $ 616,233