Notes to SEFA
Title: Extensive Compliance Test
Accounting Policies: The schedule of expenditures of federal awards has been prepared on the accrual basis of accounting. Revenues were adjusted to balance the expenditures incurred for each project.
De Minimis Rate Used: N
Rate Explanation: The Organization did not elect to use the 10% de minimis indirect cost rate permitted by the Uniform Guidance.
An extensive compliance test, as required by Title 2 U.S. Code of Federal Regulations
(CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit
Requirements for Federal Awards (Uniform Guidance), was performed on the Alternate Essential Air Service program, which represents 86% of the total expenditures reflected on the Schedule
of Federal Financial Assistance. The 20% test for a low-risk auditee was satirfied as follows: Alternate Essential Air Service Program 20.901 $4,666,205, Airport Improvement Program 20.106 $732,628 for a total of $5,398,833 x 20% equals $1,079,767 the minimum amount which must be tested. The Alternate Essential Air Service Program exceeds $1,079,767 and, therefore, represents the only program to which the specific compliance requirements must be applied.