Title: NOTE 1 - BASIS OF PRESENTATION:
Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal expenditure activity of the Mid-Atlantic Fishery Management Council, under programs of the federal government for the years ended December 31, 2023 and 2022.
The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) 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 entity, it is not intended to and does not present the entity’s financial position, changes in net assets, or cash flows.
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: N
Rate Explanation: The Council did not elect to use the 15% de minimis indirect cost rate.
The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal expenditure activity of the Mid-Atlantic Fishery Management Council, under programs of the federal government for the years ended December 31, 2023 and 2022.
The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) 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 entity, it is not intended to and does not present the entity’s financial position, changes in net assets, or cash flows.
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.
The Council did not elect to use the 15% de minimis indirect cost rate.
Title: NOTE 2 - AUDIT REQUIREMENTS:
Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal expenditure activity of the Mid-Atlantic Fishery Management Council, under programs of the federal government for the years ended December 31, 2023 and 2022.
The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) 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 entity, it is not intended to and does not present the entity’s financial position, changes in net assets, or cash flows.
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: N
Rate Explanation: The Council did not elect to use the 15% de minimis indirect cost rate.
The Council is required to have audits conducted in accordance with the Uniform Guidance because it receives funding under a five-year cooperative agreement award from the U.S. Department of Commerce’s National Oceanic and Atmospheric Administration (NOAA). Expenditures of federal awards exceeded the Single Audit threshold of $750,000 for both years presented.
The Council’s audits are conducted on a biennial basis pursuant to 2 CFR 200.504(b), which permits certain organizations that previously underwent biennial audits for all biennial periods ending between July 1, 1992, and January 1, 1995, to continue performing biennial audits under the provisions of the Uniform Guidance.
Title: NOTE 3 - FEDERAL AWARDS:
Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal expenditure activity of the Mid-Atlantic Fishery Management Council, under programs of the federal government for the years ended December 31, 2023 and 2022.
The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) 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 entity, it is not intended to and does not present the entity’s financial position, changes in net assets, or cash flows.
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: N
Rate Explanation: The Council did not elect to use the 15% de minimis indirect cost rate.
The Council receives funding from NOAA in the form of administrative cooperative agreements. Funds from these agreements are used on operating and general expenditures necessary for the Council to accomplish its mission. These agreements are awarded when needed and can run for more than one fiscal period. On November 21, 2019, an administrative cooperative agreement, NA20NMF4410002, for the period January 1, 2020, through December 31, 2024, was awarded in the original amount of $20,959,836.
Although the cooperative agreement sets an overall funding ceiling, portions of the original award only become available after NOAA approves amendment requests submitted by the Council that demonstrate a need for the funding. Each approved amendment obligates a portion of the original award, increasing Federal Awards Available on the accompanying Statement of Activities. Awards Not Drawn represent obligated funds the Council has not yet withdrawn, while Net Federal Awards represent the cash actually drawn during each of the years presented.
During 2022, the Council received $3,681,173 in federal awards in accordance with this agreement, and $4,537,050 was obligated as of December 31, 2022.
During 2023, the Council received $4,537,050 in federal awards in accordance with this agreement, and $2,312,649 was obligated as of December 31, 2023.
Actual expenditures of federal awards in each of the years presented are reconciled to the accompanying financial statements as follows. Reconciling items represent non-cash expenses, or reductions in expenses, including depreciation, adjustments to the Council’s Other Postemployment Benefits (OPEB) liability, and adjustments to the Council’s earnings on leave account. These items are included in administrative expenses in the financial statements but are not allowable or reimbursable under the Uniform Guidance, and therefore are excluded from amounts reported on the SEFA.
Total Administrative Expenses from the Statement of Activities: $4,497,856
Less: Depreciation Expense: $(33,933)
Annual Adjustments to OPEB Liability: $153,603
Annual Adjustments to Earnings on Leave Account: $69,003
Amount Reported on SEFA: $4,686,529
Total Administrative Expenses from the Statement of Activities: $3,624,819
Less: Depreciation Expense: $(30,711)
Annual Adjustments to OPEB Liability: $112,515
Annual Adjustments to Earnings on Leave Account: $(73,216)
Amouns Reported on SEFA: $3,633,407