Audit 326760

Title: Note 1. Basis of Presentation Accounting Policies: 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. Negative amounts reported in the Schedule represent adjustments or credits made in the normal course of business to amounts reported as federal expenditures in prior years. The Ports Authority does not charge indirect costs to federal awards and therefore has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance De Minimis Rate Used: N Rate Explanation: The Ports Authority does not charge indirect costs to federal awards and therefore has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal award activity of the South Carolina State Ports Authority (the “Ports Authority”) under programs of the federal government for the year ended June 30, 2024. 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”). Because the Schedule presents only a selected portion of the operations of the Ports Authority, it is not intended to and does not present the financial position, changes in net position, or cash flows of the Ports Authority.

Title: Note 2. Summary of Significant Accounting Policies for Federal Awards Accounting Policies: 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. Negative amounts reported in the Schedule represent adjustments or credits made in the normal course of business to amounts reported as federal expenditures in prior years. The Ports Authority does not charge indirect costs to federal awards and therefore has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance De Minimis Rate Used: N Rate Explanation: The Ports Authority does not charge indirect costs to federal awards and therefore has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. 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. Negative amounts reported in the Schedule represent adjustments or credits made in the normal course of business to amounts reported as federal expenditures in prior years. The Ports Authority does not charge indirect costs to federal awards and therefore has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.

Title: Note 3. Contingencies Accounting Policies: 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. Negative amounts reported in the Schedule represent adjustments or credits made in the normal course of business to amounts reported as federal expenditures in prior years. The Ports Authority does not charge indirect costs to federal awards and therefore has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance De Minimis Rate Used: N Rate Explanation: The Ports Authority does not charge indirect costs to federal awards and therefore has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. The Ports Authority receives funds under various federal grant programs and such awards are to be expended in accordance with the provisions of the various grants. Compliance with the grants is subject to audit by various government agencies which may impose sanctions in the event of non-compliance. Management believes that they have complied with all aspects of the various grant provisions and the results of adjustments, if any, relating to such audits would not have any material financial impact.

Title: Note 4. Federal Expenditures Previously Reported in the SEFA Accounting Policies: 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. Negative amounts reported in the Schedule represent adjustments or credits made in the normal course of business to amounts reported as federal expenditures in prior years. The Ports Authority does not charge indirect costs to federal awards and therefore has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance De Minimis Rate Used: N Rate Explanation: The Ports Authority does not charge indirect costs to federal awards and therefore has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. The following is a reconciliation of the federal expenditures reported in the year ended June 30, 2024 Schedule to the amounts reported in the basic financial statements: See the Notes to the SEFA for chart/table. During the year that ended on June 30, 2023, the Authority reported expenditures of $1,809,959 for the FY 2020 Better Utilizing Investments to Leverage Development (“BUILD”) Grant (Federal Assistance Listing Number 20.933; Grant Number 693JF72140021). However, the grant was terminated during the year ended June 30, 2024 due to the Authority's failure to meet critical project milestones. Consequently, the funds were returned to the awarding agency in accordance with federal grant closeout procedures.