Title: NOTE 1 – DEFINITION OF THE REPORTING ENTITY
Accounting Policies: Expenditures reported on the Schedule are reported on the cash basis of accounting and are recognized when paid.
De Minimis Rate Used: N
Rate Explanation: The Authority has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance.
The Massachusetts Bay Transportation Authority (the Authority) is a component unit of the Commonwealth of Massachusetts (the Commonwealth) formed pursuant to Commonwealth law to, among other things, hold and manage mass transportation facilities and equipment, and to enter into agreements for its operation, construction and use.
The U.S. Department of Transportation (DOT) has been designated as the Authority’s cognizant Federal agency for the Single Audit.
Title: NOTE 2 – BASIS OF PRESENTATION
Accounting Policies: Expenditures reported on the Schedule are reported on the cash basis of accounting and are recognized when paid.
De Minimis Rate Used: N
Rate Explanation: The Authority has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance.
The accompanying Schedule of Expenditures of Federal Awards (Schedule) includes the federal grant activity of the Authority, for the year ended June 30, 2023. The information in this 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). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements.
Expenditures reported on the Schedule are reported on the cash basis of accounting and are recognized when paid.
The Authority has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance.
Title: NOTE 3 – SUBRECIPIENTS
Accounting Policies: Expenditures reported on the Schedule are reported on the cash basis of accounting and are recognized when paid.
De Minimis Rate Used: N
Rate Explanation: The Authority has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance.
For the year ended June 30, 2023, the Authority did not provide federal awards to subrecipients.
Title: NOTE 4 - LOAN PROGRAM
Accounting Policies: Expenditures reported on the Schedule are reported on the cash basis of accounting and are recognized when paid.
De Minimis Rate Used: N
Rate Explanation: The Authority has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance.
In December 2017, the Authority entered into a Transportation Infrastructure Finance and Innovation Act (TIFIA) loan and a Railroad Rehabilitation and Improvement Financing (RRIF) loan with the United States Department of Transportation secured by subordinated sales tax bonds. In July 2020, the Authority refinanced the TIFIA and RIFF loans. The two loans were consolidated under the RRIF program and the total loan amount increased to $851,150,000. The new RIFF loan program consists of three tranches: (a) a PTC Tranche for $382,000,000; (b) an ATC Tranche for $369,065,000; and (c) a Resiliency Tranche for $100,085,000.
On December 1, 2021, the Authority drew down on the PTC Tranche for $382,000,000. The Authority drew on the ATC Tranche for $297,000,000 on June 1, 2023. As of June 30, 2023, the Authority had total outstanding RRIF borrowings of $679,000,000. There are no continuing compliance requirements related to any of the RRIF loan agreements.