Notes to SEFA
Title: NOTE A - 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 Uniform Guidance, wherein certain
types of expenditures are not allowable or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award
activity of Owensboro-Daviess County Regional Airport Board under programs of the federal government
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 Regulations,
Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance.) Because the Schedule
presents only a selected portion of the operations of the Airport, it is not intended to and does not present
the financial position, changes in net position, or cash flows of the Owensboro-Daviess County Regional
Airport Board.
Title: NOTE B—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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 Uniform Guidance, wherein certain
types of expenditures are not allowable or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such
expenditures are recognized following the cost principles contained in Uniform Guidance, wherein certain
types of expenditures are not allowable or are limited as to reimbursement.
Title: NOTE C – INDIRECT COST RATE
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 Uniform Guidance, wherein certain
types of expenditures are not allowable or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The Airport has elected not to use the 10% de-minimis indirect cost rate as allowed under the Uniform
Guidance.
Title: NOTE D – APPROVED COVID-19 EXPENDITURES
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 Uniform Guidance, wherein certain
types of expenditures are not allowable or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The Airport had flexibility on determining which expenditures to allocate to COVID-19 related federal
awards. A lag was created between the time the expenditures were incurred and the decision to apply the
expenditures to the federal awards. As a result, the Airport incurred eligible COVID-19 related
expenditures in the period ending June 30, 2022 and the Federal Aviation Administration approved those
expenditures in the current period ending June 30, 2023. The Airport recorded the eligible expenditures of
$81,303 in project number 3-21-0042-58-2021 on this year’s Schedule of Expenditures of Federal
Awards.