Audit 298859

Title: Basis of Presentation Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contrained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: Neuse River Council of Governments d/b/a Eastern Carolina Council utilizes an approved indirect cost rate of 48.80% as allowed under the Uniform Guidance. The accompanying Schedule of Expenditures of Federal and State Awards (the "Schedule") includes the federal and State grant activity of Neuse River Council of Governments d/b/a Eastern Carolina Council, primary government, under the programs of the federal government and the State of North Carolina for the year ended June 30, 2022. The information in this 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 (Uniform Guidance) and the State Single Audit Implementation Act. Because the Schedule presents only a select portion of the operations of Neuse River Council of Governments d/b/a Eastern Carolina Council, it is not intended to and does not present the financial position, and changes in net assets of Neuse River Council of Governments d/b/a Eastern Carolina Council.

Title: Summary of Significant Accounting Policies Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contrained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: Neuse River Council of Governments d/b/a Eastern Carolina Council utilizes an approved indirect cost rate of 48.80% as allowed under the Uniform Guidance. Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contrained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.

Title: Indirect Cost Rate Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contrained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: Neuse River Council of Governments d/b/a Eastern Carolina Council utilizes an approved indirect cost rate of 48.80% as allowed under the Uniform Guidance. Neuse River Council of Governments d/b/a Eastern Carolina Council utilizes an approved indirect cost rate of 48.80% as allowed under the Uniform Guidance. Accordingly, the Council does not utilize the 10 percent de minimis indirect cost rate as allowed under Uniform Guidance.

Title: Subrecipients Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contrained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: Neuse River Council of Governments d/b/a Eastern Carolina Council utilizes an approved indirect cost rate of 48.80% as allowed under the Uniform Guidance. Federal and State awards which have been passed-through to subrecipients by program: