Notes to SEFA
Title: 1
Accounting Policies: NOTE 1. SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation
The Schedule of Expenditures of Federal Awards is prepared using the accrual basis of accounting.
Measurement Focus
The determination of when an award is expended is based on when the activity related to the award
occurred.
Program Type Determination
Type A programs are defined as federal programs with federal expenditures exceeding the larger of
$750,000 or 3% of total federal expenditures. The threshold of $750,000 was used in distinguishing
between Type A and Type B programs.
Method of Major Program Selection
The risk based approach was used in the selection of federal programs to be tested as major
programs. The Authority qualified as a low-risk auditee for the fiscal year ended September 30,
2023.
De Minimis Indirect Cost Rate
During the year ended September 30, 2023, the Authority did not use the de Minimis indirect cost
rate. The Authority charges indirect cost to all federal programs using a cognizant agency approved
indirect cost rate. The Federal Transit Administration approved a 27.27% fixed indirect cost rate
subject to annual carryforward adjustments on May 4, 2017. The Authority’s adjusted rate was
22.38% for the period covering October 1, 2022, through September 30, 2023. The rate is applied to
direct labor and benefits.
Common Cost Methodology
The Authority allocates transportation expenses attributable to more than one program to the
Section 5307 and 5311 programs. Expenses are allocated based on revenue miles and hours in line
with a South Carolina Department of Transportation Office of Public Transit authorized
methodology. There were no changes to routes from the prior year.
De Minimis Rate Used: N
Rate Explanation: De Minimis Indirect Cost Rate
During the year ended September 30, 2023, the Authority did not use the de Minimis indirect cost
rate. The Authority charges indirect cost to all federal programs using a cognizant agency approved
indirect cost rate. The Federal Transit Administration approved a 27.27% fixed indirect cost rate
subject to annual carryforward adjustments on May 4, 2017. The Authority’s adjusted rate was
22.38% for the period covering October 1, 2022, through September 30, 2023. The rate is applied to
direct labor and benefits.
NOTE 1. SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation
The Schedule of Expenditures of Federal Awards is prepared using the accrual basis of accounting.
Measurement Focus
The determination of when an award is expended is based on when the activity related to the award
occurred.
Program Type Determination
Type A programs are defined as federal programs with federal expenditures exceeding the larger of
$750,000 or 3% of total federal expenditures. The threshold of $750,000 was used in distinguishing
between Type A and Type B programs.
Method of Major Program Selection
The risk based approach was used in the selection of federal programs to be tested as major
programs. The Authority qualified as a low-risk auditee for the fiscal year ended September 30,
2023.
De Minimis Indirect Cost Rate
During the year ended September 30, 2023, the Authority did not use the de Minimis indirect cost
rate. The Authority charges indirect cost to all federal programs using a cognizant agency approved
indirect cost rate. The Federal Transit Administration approved a 27.27% fixed indirect cost rate
subject to annual carryforward adjustments on May 4, 2017. The Authority’s adjusted rate was
22.38% for the period covering October 1, 2022, through September 30, 2023. The rate is applied to
direct labor and benefits.
Common Cost Methodology
The Authority allocates transportation expenses attributable to more than one program to the
Section 5307 and 5311 programs. Expenses are allocated based on revenue miles and hours in line
with a South Carolina Department of Transportation Office of Public Transit authorized
methodology. There were no changes to routes from the prior year.