Notes to SEFA
Accounting Policies: Notes to Schedule of Expenditures of Federal Awards
1. Definition of Reporting Entity
The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity.
The information in this schedule is presented in accordance with the requirements of the OMB
Uniform Guidance Circular.
2. Summary of Significant Accounting Policies
a. Basis of Presentation – The accompanying Schedule of Expenditures of Federal Awards is
presented using the accrual method of accounting.
b. Contract Services – The Authority contracts with third parties to provide fixed route and
demand response transportation services. The costs associated with these contracts that are
funded with federal assistance are presented in the Schedule of Expenditures of Federal
Awards as disbursements. The Authority maintains a system to monitor the use of these
funds by the contractors to assure compliance with applicable federal regulations.
c. The Authority identified the larger Federal Programs (Type A programs) as those programs
that exceed $750,000. All other programs are labeled as Type B programs.
d. The Authority did not use the 10% de minimus cost rate for any of its grants.
De Minimis Rate Used: N
Rate Explanation: THE AUDITEE DID NOT USE THE DE MINIMIS COST RATE