Notes to SEFA
Accounting Policies: 1) Definition of Reporting EntityThe accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of the NantucketRegional Transit Authority (the Authority). The information in this schedule is presented in accordance with the requirementsof the OMB Uniform Guidance Circular.2) Summary of Significant Accounting Policies(a) Basis of PresentationThe accompanying Schedule of Expenditures of Federal Awards is presented using the accrual method of accounting.(b) Contract ServicesThe Authority contracts with third parties to provide fixed route and demand response transportation services. Thecosts associated with these contracts that are funded with federal assistance are presented in the Schedule ofExpenditures of Federal Awards as disbursements. The Authority maintains a system to monitor the use of thesefunds by the contractors to assure compliance with applicable federal regulations.(c) The Authority identified the larger Federal Programs (Type A programs) as those programs that exceed $750,000. All other programs are labeled as Type B programs.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.