Audit 314216

Accounting Policies: Note 1. Summary of Significant Accounting PoliciesReporting entity: The schedule of expenditures of federal awards (the Schedule) includes the activity ofall federal programs administered by Central Texas Regional Mobility Authority (the Authority). Becausethis Schedule presents only a selected portion of the operations of the Authority, it is not intended to, anddoes not, present the financial position, changes in net position or cash flows of the Authority.Basis of presentation: The Schedule presents total federal awards expended for each individualprogram in accordance with the Uniform Guidance.Basis of accounting: The expenditures for each of the federal financial assistance programs arepresented on the accrual basis of accounting for the Authoritys fiscal year. Such expenditures arerecognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200,Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards,wherein certain types of expenditures are not allowable or are limited as to reimbursement.Indirect cost rate: In accordance with the Uniform Guidance, the Authority did not apply or use anindirect cost rate as defined by Uniform Guidance for the period ended June 30, 2022.Loan and loan guarantees: In connection with the Series 2021A TIFIA Bond, the Authority entered intoa secured loan agreement (the 2021A TIFIA Loan) with the United States Department of Transportation,pursuant to which the Authority is authorized to borrow an amount not to exceed $448,383,623 (excludinginterest that is capitalized) (i) to pay eligible project costs of the 183A Phase III Project (183A tranche),(ii) refinance the 2015C TIFIA Bond (183S tranche) previously used on 183 South Project and (iii) to payeligible project costs of improvements to the 290 East Project (Manor Expressway Tranche).The 2021A TIFIA Loan bears interest at 2.19% for the 183S tranche, 2.2% for the Manor ExpresswayTranche and 2.2% for the 183A tranche. The 2021A TIFIA Loan maturity date is July 1, 2049 for the183S tranche, January 1, 2054 for the Manor Expressway Tranche and January 1, 2055 for the183A tranche.Payments of principal and interest are payable January 1 and July 1, commencing on July 1, 2024 for the183S tranche; January 1, 2025 for the Manor Expressway Tranche and January 1, 2029 for the183A tranche.The Authority has received loan proceeds from the 183S tranche of approximately $282.2 million and theManor Expressway Tranche of approximately $38.6 million through June 30, 2022. The Authority has notused the available balance under the 183A tranche. As of June 30, 2022, the Manor Expressway TIFIABond and the 183-S TIFIA Bond had an outstanding balance of $39.3 million and $311.5 million,respectively, which included accreted interest of approximately $29.1 million for the 183-S TIFIA Bondand $0.7 million for the Manor Expressway TIFIA Bond as part of the outstanding balance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.