Audit 294254

Title: Basis of Presentation Accounting Policies: Expenditures reported in the SEFSA are reported on the modified 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. De Minimis Rate Used: N Rate Explanation: Kerr-Tar Regional Council of Governments has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying schedule of expenditures of Federal and State awards (SEFSA) includes the Federal and State grant activity of Kerr-Tar Regional Council of Governments under the programs of the Federal government and the State of North Carolina for the year ended June 30, 2023. 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 the State Single Audit Implementation Act. Because the Schedule presents only a selected portion of the operations of Kerr-Tar Regional Council of Governments, it is not intended to and does not present the financial position, changes in net position, or cash flows of Kerr-Tar Regional Council of Governments.

Title: Economic Development Administration and CARES EDA Accounting Policies: Expenditures reported in the SEFSA are reported on the modified 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. De Minimis Rate Used: N Rate Explanation: Kerr-Tar Regional Council of Governments has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. The Economic Developmment Administration expenditures for the CARES EDA are calculated using the following method: Balance of the principal outstanding on loans at the end of the recipient's fiscal year, plus cash and investment balance at the end of the recipient's fiscal year, plus administrative expenses paid out of income during the recipient's fiscal year, plus unpaid principal of all loans written off during the recipient's fiscal year, then multiply the sum by the federal share.