Audit 325970

Title: Purpose of the schedule Accounting Policies: NOTE 2. SIGNIFICANT ACCOUNTING POLICIES Basis of Preparation The information in the schedule is presented in accordance with Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost of Principles, and Audit Requirement for Federal Awards. Federal Awards Pursuant to Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards assistance is defined by a federal agency, either directly or indirectly in the form of grants, contracts, cooperative agreements, loans, loan guarantees, property, interest subsidies, insurance or direct appropriation. Accordingly, non-monetary federal assistance, including federal surplus property, would be included in federal wards, if applicable, and therefore, would be reported on the schedule in federal awards. Federal awards include direct federal cash assistance to individuals. Type A and Type B Programs The Single Audit Act Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements Cost Principles, and Audit Requirements for Federal Awards establish the levels of expenditure or expenses to be used in defining Type A and Type B federal award programs. Type A programs, for the Council, are those programs which exceed $750,000 in federal expenditures, distributions, or issuances for the fiscal year ended June 30, 2024. Reporting Entity The reporting entity is fully described in Note 1 of the Council financial statements. The schedule includes all federal award programs administered by the Council for the year ended June 30, 2024. De Minimis Rate Used: N Rate Explanation: The entity negotiates an indirect cost rate with the Department of Transportation The accompanying Schedule of Expenditures of Federal Awards is a supplementary schedule to the Council’s financial statements and is presented for the purpose of additional analysis. Because the schedule presents only a selected portion of the activities of the Council, it is not intended to, and does not present financial position, changes in fund balances, or the current funds, revenue, expenditure, and other changes of the Council.

Title: Basis of Accounting Accounting Policies: NOTE 2. SIGNIFICANT ACCOUNTING POLICIES Basis of Preparation The information in the schedule is presented in accordance with Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost of Principles, and Audit Requirement for Federal Awards. Federal Awards Pursuant to Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards assistance is defined by a federal agency, either directly or indirectly in the form of grants, contracts, cooperative agreements, loans, loan guarantees, property, interest subsidies, insurance or direct appropriation. Accordingly, non-monetary federal assistance, including federal surplus property, would be included in federal wards, if applicable, and therefore, would be reported on the schedule in federal awards. Federal awards include direct federal cash assistance to individuals. Type A and Type B Programs The Single Audit Act Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements Cost Principles, and Audit Requirements for Federal Awards establish the levels of expenditure or expenses to be used in defining Type A and Type B federal award programs. Type A programs, for the Council, are those programs which exceed $750,000 in federal expenditures, distributions, or issuances for the fiscal year ended June 30, 2024. Reporting Entity The reporting entity is fully described in Note 1 of the Council financial statements. The schedule includes all federal award programs administered by the Council for the year ended June 30, 2024. De Minimis Rate Used: N Rate Explanation: The entity negotiates an indirect cost rate with the Department of Transportation The expenditures in the schedule are recognized as incurred based on the modified accrual basis of accounting and the cost accounting principles contained in the Uniform Guidance, Cost Principles for State and Local Governments. Under those cost principles, certain types of expenditures are not allowable or are limited as to reimbursement.

Title: Matching costs Accounting Policies: NOTE 2. SIGNIFICANT ACCOUNTING POLICIES Basis of Preparation The information in the schedule is presented in accordance with Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost of Principles, and Audit Requirement for Federal Awards. Federal Awards Pursuant to Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards assistance is defined by a federal agency, either directly or indirectly in the form of grants, contracts, cooperative agreements, loans, loan guarantees, property, interest subsidies, insurance or direct appropriation. Accordingly, non-monetary federal assistance, including federal surplus property, would be included in federal wards, if applicable, and therefore, would be reported on the schedule in federal awards. Federal awards include direct federal cash assistance to individuals. Type A and Type B Programs The Single Audit Act Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements Cost Principles, and Audit Requirements for Federal Awards establish the levels of expenditure or expenses to be used in defining Type A and Type B federal award programs. Type A programs, for the Council, are those programs which exceed $750,000 in federal expenditures, distributions, or issuances for the fiscal year ended June 30, 2024. Reporting Entity The reporting entity is fully described in Note 1 of the Council financial statements. The schedule includes all federal award programs administered by the Council for the year ended June 30, 2024. De Minimis Rate Used: N Rate Explanation: The entity negotiates an indirect cost rate with the Department of Transportation The schedule does not include matching costs

Title: Direct and Indirect Flow-Though Federal Assistance Accounting Policies: NOTE 2. SIGNIFICANT ACCOUNTING POLICIES Basis of Preparation The information in the schedule is presented in accordance with Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost of Principles, and Audit Requirement for Federal Awards. Federal Awards Pursuant to Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards assistance is defined by a federal agency, either directly or indirectly in the form of grants, contracts, cooperative agreements, loans, loan guarantees, property, interest subsidies, insurance or direct appropriation. Accordingly, non-monetary federal assistance, including federal surplus property, would be included in federal wards, if applicable, and therefore, would be reported on the schedule in federal awards. Federal awards include direct federal cash assistance to individuals. Type A and Type B Programs The Single Audit Act Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements Cost Principles, and Audit Requirements for Federal Awards establish the levels of expenditure or expenses to be used in defining Type A and Type B federal award programs. Type A programs, for the Council, are those programs which exceed $750,000 in federal expenditures, distributions, or issuances for the fiscal year ended June 30, 2024. Reporting Entity The reporting entity is fully described in Note 1 of the Council financial statements. The schedule includes all federal award programs administered by the Council for the year ended June 30, 2024. De Minimis Rate Used: N Rate Explanation: The entity negotiates an indirect cost rate with the Department of Transportation Some of the Council’s Federal Awards are received directly from the granting federal agency. However, the majority of federal awards as identified on the schedule are passed through a separate entity prior to receipt by the Council.

Title: Sub-recipients Accounting Policies: NOTE 2. SIGNIFICANT ACCOUNTING POLICIES Basis of Preparation The information in the schedule is presented in accordance with Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost of Principles, and Audit Requirement for Federal Awards. Federal Awards Pursuant to Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards assistance is defined by a federal agency, either directly or indirectly in the form of grants, contracts, cooperative agreements, loans, loan guarantees, property, interest subsidies, insurance or direct appropriation. Accordingly, non-monetary federal assistance, including federal surplus property, would be included in federal wards, if applicable, and therefore, would be reported on the schedule in federal awards. Federal awards include direct federal cash assistance to individuals. Type A and Type B Programs The Single Audit Act Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements Cost Principles, and Audit Requirements for Federal Awards establish the levels of expenditure or expenses to be used in defining Type A and Type B federal award programs. Type A programs, for the Council, are those programs which exceed $750,000 in federal expenditures, distributions, or issuances for the fiscal year ended June 30, 2024. Reporting Entity The reporting entity is fully described in Note 1 of the Council financial statements. The schedule includes all federal award programs administered by the Council for the year ended June 30, 2024. De Minimis Rate Used: N Rate Explanation: The entity negotiates an indirect cost rate with the Department of Transportation The Council does not pass through to any sub-recipients

Title: Non-cash assistance Accounting Policies: NOTE 2. SIGNIFICANT ACCOUNTING POLICIES Basis of Preparation The information in the schedule is presented in accordance with Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost of Principles, and Audit Requirement for Federal Awards. Federal Awards Pursuant to Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards assistance is defined by a federal agency, either directly or indirectly in the form of grants, contracts, cooperative agreements, loans, loan guarantees, property, interest subsidies, insurance or direct appropriation. Accordingly, non-monetary federal assistance, including federal surplus property, would be included in federal wards, if applicable, and therefore, would be reported on the schedule in federal awards. Federal awards include direct federal cash assistance to individuals. Type A and Type B Programs The Single Audit Act Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements Cost Principles, and Audit Requirements for Federal Awards establish the levels of expenditure or expenses to be used in defining Type A and Type B federal award programs. Type A programs, for the Council, are those programs which exceed $750,000 in federal expenditures, distributions, or issuances for the fiscal year ended June 30, 2024. Reporting Entity The reporting entity is fully described in Note 1 of the Council financial statements. The schedule includes all federal award programs administered by the Council for the year ended June 30, 2024. De Minimis Rate Used: N Rate Explanation: The entity negotiates an indirect cost rate with the Department of Transportation The council did not receive any non-cash assistance for the year ended June 30, 2024