Audit 302505

Title: Note 2—Passenger facility charges Accounting Policies: The schedules of expenditures of federal awards and state financial assistance and passenger facility charges (the “Schedules”) include all grants, contracts, and similar agreements entered into directly between the Miami-Dade Aviation Department (the “Aviation Department”) and agencies and departments of the federal and state governments. The information in the schedule of expenditures of federal awards and state financial assistance is prepared on the accrual basis of accounting and 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 Chapter 10.550, Rules of the Auditor General. The schedule of passenger facility charges is prepared on the cash basis of accounting and is presented in accordance with the requirements of the Passenger Facility Charge Audit Guide for Public Agencies, issued by the Federal Aviation Administration in September 2000. The grants reflect transactions for the fiscal year irrespective of the year of grant award and, accordingly, the Schedules do not include a full year’s activity for grants awarded or terminated on dates not coinciding with the aforementioned fiscal year. There were no awards passed through to subrecipients. De Minimis Rate Used: N Rate Explanation: The Aviation Department has not elected to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. Revenue consists of passenger facility fees and investment earnings on the restricted cash related to passenger facility charges. Expenditures represent airport construction-related costs incurred at the Aviation Department.

Title: Note 3—Reconciliation to the statement of revenues, expenses, and changes in net position Accounting Policies: The schedules of expenditures of federal awards and state financial assistance and passenger facility charges (the “Schedules”) include all grants, contracts, and similar agreements entered into directly between the Miami-Dade Aviation Department (the “Aviation Department”) and agencies and departments of the federal and state governments. The information in the schedule of expenditures of federal awards and state financial assistance is prepared on the accrual basis of accounting and 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 Chapter 10.550, Rules of the Auditor General. The schedule of passenger facility charges is prepared on the cash basis of accounting and is presented in accordance with the requirements of the Passenger Facility Charge Audit Guide for Public Agencies, issued by the Federal Aviation Administration in September 2000. The grants reflect transactions for the fiscal year irrespective of the year of grant award and, accordingly, the Schedules do not include a full year’s activity for grants awarded or terminated on dates not coinciding with the aforementioned fiscal year. There were no awards passed through to subrecipients. De Minimis Rate Used: N Rate Explanation: The Aviation Department has not elected to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. Passenger facility charges are reported on an accrual basis in the Aviation Department’s revenues, expenses, and changes in net position in the Annual Comprehensive Financial Report. Reporting standards adopted by the FAA require for purposes of the PFC Revenues and Disbursements Schedule such charges be reported on a cash basis. A reconciliation between cash collections and revenue reported on the accrual basis is as follows: See notes to the SEFSA for chart / table.