Audit 314542

Title: Note 1 – Basis of Presentation Accounting Policies: accounting. Federal expenditures are recognized following the cost principles contained in OMB’s Uniform Guidance (2 CFR part 200, subpart E), wherein certain types of expenditures are not allowable or are limited as to reimbursement. If applicable, negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: The awards are strictly reimbursements from FAA for direct costs incurred. The accompanying schedule of expenditures of federal awards and passenger facility charges (the “Schedule”) includes the federal grant activity of the Sanford Airport Authority (the “Authority”) under programs of the federal government for the year ended September 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 (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 financial position, changes in net position, or cash flows of the Authority.

Title: Note 2 – Summary of Significant Accounting Policies Accounting Policies: accounting. Federal expenditures are recognized following the cost principles contained in OMB’s Uniform Guidance (2 CFR part 200, subpart E), wherein certain types of expenditures are not allowable or are limited as to reimbursement. If applicable, negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: The awards are strictly reimbursements from FAA for direct costs incurred. Expenditures reported on the Schedule are reported on the accrual basis of accounting.

Title: Note 3 – Indirect Costs Accounting Policies: accounting. Federal expenditures are recognized following the cost principles contained in OMB’s Uniform Guidance (2 CFR part 200, subpart E), wherein certain types of expenditures are not allowable or are limited as to reimbursement. If applicable, negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: The awards are strictly reimbursements from FAA for direct costs incurred. The Authority did not charge indirect costs to its federal program for the year ended September 30, 2023.