Audit 323522

Title: Basis of Accounting Accounting Policies: The accompanying schedule of expenditures of Federal awards presents the activity of all Federal awards programs of Luzerne County Flood Protection Authority (the "Authority"). The Authority's reporting entity is defined in Note 1 to the financial statements. All Federal awards received directly from Federal agencies as well as Federal awards passed-through other government agencies are included in the schedule. De Minimis Rate Used: N Rate Explanation: The Authority has elected not to use the ten percent de minimis cost rate. Indirect costs are allocated to programs based on applicable criteria relative to the Federal program. 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"). The amounts reported in the accompanying schedule of expenditures of Federal awards agree, in all material respects, to amounts reported within the Authority's financial statements. Federal award revenues are reported principally in the Authority's financial statements as grants. Expenditures are recognized following, as applicable, either the grant agreement, the cost principles in OMB 2 CFR Part 200 Subpart E, or the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.