Audit 335535

Title: Note D — Program Costs/Matching Contributions: Accounting Policies: Note A — Basis of Presentation: The accompanying schedule of expenditures of federal awards includes the federal grant activity of South Central Regional Council of Governments ("SCRCOG"), and is presented on the accrual basis of accounting. 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). The schedule presents only a selected portion of the operations of South Central Regional Council of Governments. It is not intended to, and does not present, the financial position or changes in net assets of South Central Regional Council of Governments. Note B — Summary of Significant 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. De Minimis Rate Used: Both Rate Explanation: The SCRCOG uses an indirect cost rate as required under their Unified Planning Work Program agreement (UPWP) with the Connecticut Department of Transportation, the Federal Highway Administration and the Federal Transit Administration. The UPWP provides for a provisional indirect cost rate for reimbursements during the year with a recalculation at the end of the year to an actual amount and retroactive application to all requests during the year. The indirect cost rate for the year ended June 30, 2024 was 132.90%. The Economic Adjustment Assistance, CFDA 11.307, utilizes the 10 percent de minimis indirect cost rate. Expenditures are recognized following the cost principles prescribed by Uniform Guidance wherein certain types of expenditures are not allowed or are limited as to reimbursement. The amounts shown as current year expenses represent only the federal award portion of the program costs. Entire program costs, including the SCRCOG’s and/or State of Connecticut's matching shares, may be more than shown. Such expenditures are recognized following, the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement.