Audit 322724

Title: BASIS OF PRESENTATION Accounting Policies: (a) Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. (b) Lawrence County Port Authority has elected not to use the 10 percent de minimus indirect cost rate as allowed under the Uniform Guidance. (c) Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: Lawrence County Port Authority has elected not to use the 10 percent de minimus indirect cost rate as allowed under the Uniform Guidance. The accompanying Schedule of Federal Awards Expenditures (Schedule) includes the federal award activity of Lawrence County Port Authority under programs of the federal government for the year ended December 31, 2023. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Since the schedule presents only a selected portion of the operations of Lawrence County Port Authority, it is not intended to and does not present Lawrence County Port Authority’s net position, change in net position, or cash flows.

Title: DOT FEDERAL TRANSIT – FORMULA GRANTS Accounting Policies: (a) Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. (b) Lawrence County Port Authority has elected not to use the 10 percent de minimus indirect cost rate as allowed under the Uniform Guidance. (c) Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: Lawrence County Port Authority has elected not to use the 10 percent de minimus indirect cost rate as allowed under the Uniform Guidance. Cash receipts from the U.S. Department of Transportation are commingled with State grants. It is assumed federal monies are expended first.

Title: MATCHING REQUIREMENTS Accounting Policies: (a) Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. (b) Lawrence County Port Authority has elected not to use the 10 percent de minimus indirect cost rate as allowed under the Uniform Guidance. (c) Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: Lawrence County Port Authority has elected not to use the 10 percent de minimus indirect cost rate as allowed under the Uniform Guidance. Certain Federal programs require the Lawrence County Port Authority to contribute non-federal funds (matching funds) to support the federally funded programs. The Lawrence County Port Authority has met its matching requirements. The schedule does not include the expenditures of non-federal matching funds.