Audit 297934

Title: Note 1 - Basis of Presentation 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 Uniform Guidance, wherein certain types of expenditures are not allowable or limited as to reimbursement. Expenditures are reported on the SEFA when: (1) FEMA has approved the Authority’s Project Worksheet (“PW”), and (2) the Authority has incurred the eligible expenditures. Federal awards expended in years subsequent to the fiscal year in which the PW is approved are reported in the Authority’s SEFA in those subsequent years. The Authority is reimbursed at 90% of the approved amount of the PW and the amount of federal expenditures reported on the SEFA is limited to the maximum reimbursable value. De Minimis Rate Used: N Rate Explanation: The Authority 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 awards (the “Schedule” or “SEFA”) includes the federal award activity of the New York City School Construction Authority (the “Authority”), a component unit of The City of New York, for the year ended June 30, 2023. The information in the Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (the “Uniform Guidance”). Because the Schedule presents only a selected portion of the operations of the Authority, it is not intended to and does not present the net position or changes in net position of the Authority.

Title: Note 2 - Summary of Significant Accounting Policies 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 Uniform Guidance, wherein certain types of expenditures are not allowable or limited as to reimbursement. Expenditures are reported on the SEFA when: (1) FEMA has approved the Authority’s Project Worksheet (“PW”), and (2) the Authority has incurred the eligible expenditures. Federal awards expended in years subsequent to the fiscal year in which the PW is approved are reported in the Authority’s SEFA in those subsequent years. The Authority is reimbursed at 90% of the approved amount of the PW and the amount of federal expenditures reported on the SEFA is limited to the maximum reimbursable value. De Minimis Rate Used: N Rate Explanation: The Authority has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or limited as to reimbursement. Expenditures are reported on the SEFA when: (1) FEMA has approved the Authority’s Project Worksheet (“PW”), and (2) the Authority has incurred the eligible expenditures. Federal awards expended in years subsequent to the fiscal year in which the PW is approved are reported in the Authority’s SEFA in those subsequent years. The Authority is reimbursed at 90% of the approved amount of the PW and the amount of federal expenditures reported on the SEFA is limited to the maximum reimbursable value.

Title: Note 3 - Indirect Cost Rates 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 Uniform Guidance, wherein certain types of expenditures are not allowable or limited as to reimbursement. Expenditures are reported on the SEFA when: (1) FEMA has approved the Authority’s Project Worksheet (“PW”), and (2) the Authority has incurred the eligible expenditures. Federal awards expended in years subsequent to the fiscal year in which the PW is approved are reported in the Authority’s SEFA in those subsequent years. The Authority is reimbursed at 90% of the approved amount of the PW and the amount of federal expenditures reported on the SEFA is limited to the maximum reimbursable value. De Minimis Rate Used: N Rate Explanation: The Authority has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. The Authority has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.

Title: Note 4 - Purpose of Funds - Emergency Protective Measures 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 Uniform Guidance, wherein certain types of expenditures are not allowable or limited as to reimbursement. Expenditures are reported on the SEFA when: (1) FEMA has approved the Authority’s Project Worksheet (“PW”), and (2) the Authority has incurred the eligible expenditures. Federal awards expended in years subsequent to the fiscal year in which the PW is approved are reported in the Authority’s SEFA in those subsequent years. The Authority is reimbursed at 90% of the approved amount of the PW and the amount of federal expenditures reported on the SEFA is limited to the maximum reimbursable value. De Minimis Rate Used: N Rate Explanation: The Authority has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. The primary purpose of the grant is to provide emergency funds for repairs and maintenance as a result of significant damage caused to New York City schools by Superstorm Sandy, a natural disaster which occurred in October 2012. The PWs for Superstorm Sandy damage have been for Category B work, which is for emergency repairs, and Category E work, which is for permanent work. FEMA defines Category B and Category E (Emergency Protective Measures) as measures taken before, during, and after a disaster to save lives, protect public health and safety, and protect improved public and private property.