Audit 361027

Title: NOTE 1: ORGANIZATION Accounting Policies: MEASUREMENT FOCUS, BASIS OF ACCOUNTING AND FINANCIAL STATEMENTS PRESENTATION All revenue is considered program revenue because CAMPO does not receive taxes or other general revenues. The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. All revenue is considered program revenue because CAMPO does not receive taxes or other general revenues. Revenues are recorded as earned and expenses are recorded when a liability is incurred, regardless of the timing of the related cash flows. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider are met. Separate financial statements are provided for governmental funds. A fund financial statement is presented for CAMPO’s only fund, the General Fund. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, CAMPO considers revenues to be available if they are collected within 60 days of the end of the current period, unless collections are delayed beyond a normal time of receipt due to unusual circumstances. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. GASB 54 has provided a classification hierarchy of fund balances based on spending constraints. Unassigned fund balance represents fund balance that has not been assigned to other funds and that has not been restricted, committed, or assigned to specific purposes. Nonspendable fund balance represents amounts that are not in a spendable form. Net position in government-wide financial statements is classified as net investment in capital assets, restricted, and unrestricted. Restricted net position represents constraints on resources that are externally imposed by creditors, grantor, contributors, or laws or regulations of other government, or imposed by law. When both restricted and unrestricted resources are available for use, it is CAMPO’s policy to use restricted resources first, then unrestricted resources as they are needed. De Minimis Rate Used: Y Rate Explanation: The auditee did not elect to use the de minimis cost rate. Capital Area Metropolitan Planning Organization (CAMPO) is the federally required Metropolitan Planning Organization responsible for the continuous and comprehensive transportation planning process for the Williamson, Travis, Hays, Bastrop, Caldwell, and Burnet counties in central Texas. Its purpose is to coordinate regional transportation planning with counties, cities, the Capital Metropolitan Transportation Authority (Capital Metro), the Capital Area Rural Transportation System (CARTS), Texas Department of Transportation (TxDOT), and other transportation providers in the region and to approve the use of federal transportation funds within the region. CAMPO was established in 1973 and is governed by the Transportation Policy Board (CAMPO board) comprised of state, regional, and local officials. For the year ended September 30, 2024, CAMPO had a staffing arrangement with Williamson County, whereby all CAMPO personnel services were performed by certain Williamson County employees. The salaries and related fringe benefits of such Williamson County employees were reimbursed to Williamson County by CAMPO.

Title: NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: MEASUREMENT FOCUS, BASIS OF ACCOUNTING AND FINANCIAL STATEMENTS PRESENTATION All revenue is considered program revenue because CAMPO does not receive taxes or other general revenues. The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. All revenue is considered program revenue because CAMPO does not receive taxes or other general revenues. Revenues are recorded as earned and expenses are recorded when a liability is incurred, regardless of the timing of the related cash flows. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider are met. Separate financial statements are provided for governmental funds. A fund financial statement is presented for CAMPO’s only fund, the General Fund. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, CAMPO considers revenues to be available if they are collected within 60 days of the end of the current period, unless collections are delayed beyond a normal time of receipt due to unusual circumstances. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. GASB 54 has provided a classification hierarchy of fund balances based on spending constraints. Unassigned fund balance represents fund balance that has not been assigned to other funds and that has not been restricted, committed, or assigned to specific purposes. Nonspendable fund balance represents amounts that are not in a spendable form. Net position in government-wide financial statements is classified as net investment in capital assets, restricted, and unrestricted. Restricted net position represents constraints on resources that are externally imposed by creditors, grantor, contributors, or laws or regulations of other government, or imposed by law. When both restricted and unrestricted resources are available for use, it is CAMPO’s policy to use restricted resources first, then unrestricted resources as they are needed. De Minimis Rate Used: Y Rate Explanation: The auditee did not elect to use the de minimis cost rate. MEASUREMENT FOCUS, BASIS OF ACCOUNTING AND FINANCIAL STATEMENTS PRESENTATION The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. All revenue is considered program revenue because CAMPO does not receive taxes or other general revenues. Revenues are recorded as earned and expenses are recorded when a liability is incurred, regardless of the timing of the related cash flows. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider are met. Separate financial statements are provided for governmental funds. A fund financial statement is presented for CAMPO’s only fund, the General Fund. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, CAMPO considers revenues to be available if they are collected within 60 days of the end of the current period, unless collections are delayed beyond a normal time of receipt due to unusual circumstances. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. MEASUREMENT FOCUS, BASIS OF ACCOUNTING AND FINANCIAL STATEMENTS PRESENTATION GASB 54 has provided a classification hierarchy of fund balances based on spending constraints. Unassigned fund balance represents fund balance that has not been assigned to other funds and that has not been restricted, committed, or assigned to specific purposes. Nonspendable fund balance represents amounts that are not in a spendable form. Net position in government-wide financial statements is classified as net investment in capital assets, restricted, and unrestricted. Restricted net position represents constraints on resources that are externally imposed by creditors, grantors, contributors, or laws or regulations of other governments, or imposed by law. When both restricted and unrestricted resources are available for use, it is CAMPO’s policy to use restricted resources first, then unrestricted resources as they are needed. Encumbrance accounting, under which purchase orders, contracts, and other commitments for the expenditure of monies are recorded in order to reserve that portion of the applicable appropriation, is employed as an extension of formal budgetary integration in the General Fund. CASH Cash balances are pooled and invested with other funds by Williamson County, under a fiscal agent agreement. Interest earned is deposited to the account of each participating fund. RECEIVABLES All receivables and amounts due from other governments are reported net of an allowance for uncollectible accounts, which is based upon management’s analysis of historical trends. Once an account is deemed uncollectible, it is written off. Receivables are considered delinquent based on how recently payments have been received. At year end, management believes all outstanding balances are collectible. No allowance for uncollectible accounts has been recorded. CAPITAL ASSETS Capital assets, which include furniture and equipment, are reported in the Statement of Net Position. CAMPO defines capital assets as assets with an initial, individual cost of $5,000 or more. All capital assets are valued at historical cost or estimated historical cost if actual historical cost is not available. Donated capital assets are valued at their estimated fair value on the date donated. The depreciable lives of capital assets are estimated to be five to ten years. ESTIMATES The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amount of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. LEASES CAMPO determines if an arrangement is or contains a lease at inception. Upon inception of a lease, the present value of the minimum lease payments are included in right of use (ROU) assets and lease liabilities in the government-wide statement of financial position and recorded as lease expenditures and other financing sources in the fund financial statements. Amortization of the ROU asset is recognized on a straight-line basis over the lease term in the government-wide financial statements. Lease payments are recognized as principal and interest payments in the fund financial statements. For short term leases of 12 months or less, the lease payments are recognized as rent expense is incurred in both the government- wide and fund financial statements.

Title: NOTE 4: CASH Accounting Policies: MEASUREMENT FOCUS, BASIS OF ACCOUNTING AND FINANCIAL STATEMENTS PRESENTATION All revenue is considered program revenue because CAMPO does not receive taxes or other general revenues. The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. All revenue is considered program revenue because CAMPO does not receive taxes or other general revenues. Revenues are recorded as earned and expenses are recorded when a liability is incurred, regardless of the timing of the related cash flows. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider are met. Separate financial statements are provided for governmental funds. A fund financial statement is presented for CAMPO’s only fund, the General Fund. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, CAMPO considers revenues to be available if they are collected within 60 days of the end of the current period, unless collections are delayed beyond a normal time of receipt due to unusual circumstances. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. GASB 54 has provided a classification hierarchy of fund balances based on spending constraints. Unassigned fund balance represents fund balance that has not been assigned to other funds and that has not been restricted, committed, or assigned to specific purposes. Nonspendable fund balance represents amounts that are not in a spendable form. Net position in government-wide financial statements is classified as net investment in capital assets, restricted, and unrestricted. Restricted net position represents constraints on resources that are externally imposed by creditors, grantor, contributors, or laws or regulations of other government, or imposed by law. When both restricted and unrestricted resources are available for use, it is CAMPO’s policy to use restricted resources first, then unrestricted resources as they are needed. De Minimis Rate Used: Y Rate Explanation: The auditee did not elect to use the de minimis cost rate. At September 30, 2024, CAMPO had no cash funds. CAMPO, through Williamson County Commissioners Court, follows the requirements of Chapter 2256 of the Texas Government Code which authorizes the County to invest its funds under a written investment policy. These deposits are invested pursuant to the investment policy, which is approved annually by the Williamson County Commissioners Court. Interest Rate Risk - Investments are governed as discussed above. Credit Risk - CAMPO’s investment policies are governed as discussed above. Concentrations of Credit Risk - CAMPO’s investment policies are governed as discussed above. Custodial Credit Risk - Custodial Credit Risk is the risk that in the event of a failure of a depository, CAMPO’s deposits may not be returned to it. At September 30, 2024, CAMPO had no custodial credit risk.

Title: NOTE 5: CONCENTRATIONS Accounting Policies: MEASUREMENT FOCUS, BASIS OF ACCOUNTING AND FINANCIAL STATEMENTS PRESENTATION All revenue is considered program revenue because CAMPO does not receive taxes or other general revenues. The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. All revenue is considered program revenue because CAMPO does not receive taxes or other general revenues. Revenues are recorded as earned and expenses are recorded when a liability is incurred, regardless of the timing of the related cash flows. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider are met. Separate financial statements are provided for governmental funds. A fund financial statement is presented for CAMPO’s only fund, the General Fund. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, CAMPO considers revenues to be available if they are collected within 60 days of the end of the current period, unless collections are delayed beyond a normal time of receipt due to unusual circumstances. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. GASB 54 has provided a classification hierarchy of fund balances based on spending constraints. Unassigned fund balance represents fund balance that has not been assigned to other funds and that has not been restricted, committed, or assigned to specific purposes. Nonspendable fund balance represents amounts that are not in a spendable form. Net position in government-wide financial statements is classified as net investment in capital assets, restricted, and unrestricted. Restricted net position represents constraints on resources that are externally imposed by creditors, grantor, contributors, or laws or regulations of other government, or imposed by law. When both restricted and unrestricted resources are available for use, it is CAMPO’s policy to use restricted resources first, then unrestricted resources as they are needed. De Minimis Rate Used: Y Rate Explanation: The auditee did not elect to use the de minimis cost rate. CAMPO’s federal and state awards receivable at year end are due from a single grantor. Funding received from this grantor make up 98% of total revenue.

Title: NOTE 6: LEASES Accounting Policies: MEASUREMENT FOCUS, BASIS OF ACCOUNTING AND FINANCIAL STATEMENTS PRESENTATION All revenue is considered program revenue because CAMPO does not receive taxes or other general revenues. The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. All revenue is considered program revenue because CAMPO does not receive taxes or other general revenues. Revenues are recorded as earned and expenses are recorded when a liability is incurred, regardless of the timing of the related cash flows. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider are met. Separate financial statements are provided for governmental funds. A fund financial statement is presented for CAMPO’s only fund, the General Fund. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, CAMPO considers revenues to be available if they are collected within 60 days of the end of the current period, unless collections are delayed beyond a normal time of receipt due to unusual circumstances. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. GASB 54 has provided a classification hierarchy of fund balances based on spending constraints. Unassigned fund balance represents fund balance that has not been assigned to other funds and that has not been restricted, committed, or assigned to specific purposes. Nonspendable fund balance represents amounts that are not in a spendable form. Net position in government-wide financial statements is classified as net investment in capital assets, restricted, and unrestricted. Restricted net position represents constraints on resources that are externally imposed by creditors, grantor, contributors, or laws or regulations of other government, or imposed by law. When both restricted and unrestricted resources are available for use, it is CAMPO’s policy to use restricted resources first, then unrestricted resources as they are needed. De Minimis Rate Used: Y Rate Explanation: The auditee did not elect to use the de minimis cost rate. CAMPO has evaluated current contracts to determine which met the criteria of a lease. The ROU asset represents CAMPO’s right to use underlying assets for the lease term, and the lease obligation represents CAMPO’s obligation to make lease payments arising from the lease. The ROU asset and lease obligation, all of which arise from an operating lease, were calculated based on the present value of future lease payments over the lease term. In May 2016, CAMPO signed a lease agreement for office space. For this lease, CAMPO made monthly payments beginning November 2016 through October 2023. CAMPO signed a new office lease in April 2023 terminating January 2034. CAMPO’s discount rate of 4.22% was based on the incremental borrowing rate, the rate CAMPO would pay for a loan to purchase a similar asset over a similar term. The remaining lease term at September 30, 2024 was 112 months. Future minimum lease principal and interest payments for the operating lease for fiscal years ending September 30 are: Principal Interest 2025 $105,963 $59,492 2026 115,606 54,836 2027 125,791 49,762 2028 136,581 44,247 2029 148,012 38,265 2030-2034 825,679 84,240 $1,457,632 $330,842 Beginning Balance Additions Payments Ending Balance Operating lease liability $23,309 $1,473,015 $38,692 $1,457,632

Title: NOTE 7: RISK MANAGEMENT Accounting Policies: MEASUREMENT FOCUS, BASIS OF ACCOUNTING AND FINANCIAL STATEMENTS PRESENTATION All revenue is considered program revenue because CAMPO does not receive taxes or other general revenues. The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. All revenue is considered program revenue because CAMPO does not receive taxes or other general revenues. Revenues are recorded as earned and expenses are recorded when a liability is incurred, regardless of the timing of the related cash flows. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider are met. Separate financial statements are provided for governmental funds. A fund financial statement is presented for CAMPO’s only fund, the General Fund. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, CAMPO considers revenues to be available if they are collected within 60 days of the end of the current period, unless collections are delayed beyond a normal time of receipt due to unusual circumstances. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. GASB 54 has provided a classification hierarchy of fund balances based on spending constraints. Unassigned fund balance represents fund balance that has not been assigned to other funds and that has not been restricted, committed, or assigned to specific purposes. Nonspendable fund balance represents amounts that are not in a spendable form. Net position in government-wide financial statements is classified as net investment in capital assets, restricted, and unrestricted. Restricted net position represents constraints on resources that are externally imposed by creditors, grantor, contributors, or laws or regulations of other government, or imposed by law. When both restricted and unrestricted resources are available for use, it is CAMPO’s policy to use restricted resources first, then unrestricted resources as they are needed. De Minimis Rate Used: Y Rate Explanation: The auditee did not elect to use the de minimis cost rate. CAMPO is exposed to various risks of loss related to torts, theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters, all of which are satisfactorily insured by general liability insurance. Commercial insurance policies are also obtained for all other risks of loss, including worker’s compensation and employee health and accident insurance.

Title: NOTE 8: CONTINGENCIES Accounting Policies: MEASUREMENT FOCUS, BASIS OF ACCOUNTING AND FINANCIAL STATEMENTS PRESENTATION All revenue is considered program revenue because CAMPO does not receive taxes or other general revenues. The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. All revenue is considered program revenue because CAMPO does not receive taxes or other general revenues. Revenues are recorded as earned and expenses are recorded when a liability is incurred, regardless of the timing of the related cash flows. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider are met. Separate financial statements are provided for governmental funds. A fund financial statement is presented for CAMPO’s only fund, the General Fund. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, CAMPO considers revenues to be available if they are collected within 60 days of the end of the current period, unless collections are delayed beyond a normal time of receipt due to unusual circumstances. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. GASB 54 has provided a classification hierarchy of fund balances based on spending constraints. Unassigned fund balance represents fund balance that has not been assigned to other funds and that has not been restricted, committed, or assigned to specific purposes. Nonspendable fund balance represents amounts that are not in a spendable form. Net position in government-wide financial statements is classified as net investment in capital assets, restricted, and unrestricted. Restricted net position represents constraints on resources that are externally imposed by creditors, grantor, contributors, or laws or regulations of other government, or imposed by law. When both restricted and unrestricted resources are available for use, it is CAMPO’s policy to use restricted resources first, then unrestricted resources as they are needed. De Minimis Rate Used: Y Rate Explanation: The auditee did not elect to use the de minimis cost rate. Amounts received or receivable from grantor agencies in current and prior years are subject to audit and adjustment by grantor agencies, principally the federal and state governments. Any disallowed claims, including amounts already collected, may constitute a liability of the applicable funds. The amount, if any, of expenditures which may be disallowed by the grantor cannot be determined at this time although management expects such amounts, if any, to be immaterial.

Title: NOTE 9: BUDGET VARIANCES Accounting Policies: MEASUREMENT FOCUS, BASIS OF ACCOUNTING AND FINANCIAL STATEMENTS PRESENTATION All revenue is considered program revenue because CAMPO does not receive taxes or other general revenues. The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. All revenue is considered program revenue because CAMPO does not receive taxes or other general revenues. Revenues are recorded as earned and expenses are recorded when a liability is incurred, regardless of the timing of the related cash flows. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider are met. Separate financial statements are provided for governmental funds. A fund financial statement is presented for CAMPO’s only fund, the General Fund. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, CAMPO considers revenues to be available if they are collected within 60 days of the end of the current period, unless collections are delayed beyond a normal time of receipt due to unusual circumstances. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. GASB 54 has provided a classification hierarchy of fund balances based on spending constraints. Unassigned fund balance represents fund balance that has not been assigned to other funds and that has not been restricted, committed, or assigned to specific purposes. Nonspendable fund balance represents amounts that are not in a spendable form. Net position in government-wide financial statements is classified as net investment in capital assets, restricted, and unrestricted. Restricted net position represents constraints on resources that are externally imposed by creditors, grantor, contributors, or laws or regulations of other government, or imposed by law. When both restricted and unrestricted resources are available for use, it is CAMPO’s policy to use restricted resources first, then unrestricted resources as they are needed. De Minimis Rate Used: Y Rate Explanation: The auditee did not elect to use the de minimis cost rate. CAMPO adopts an annual budget for the General Fund and amends the budget as needed during the year. The budget was amended during the year ended September 30, 2024. Certain revenues and expenses were different than budgeted, primarily due to the Board budgeting the full amount of the grant funded, however the budget was not fully spent. The fund financial statements also exclude revenue not available in the current period.

Title: NOTE 10: PENSION PLAN DESCRIPTION Accounting Policies: MEASUREMENT FOCUS, BASIS OF ACCOUNTING AND FINANCIAL STATEMENTS PRESENTATION All revenue is considered program revenue because CAMPO does not receive taxes or other general revenues. The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. All revenue is considered program revenue because CAMPO does not receive taxes or other general revenues. Revenues are recorded as earned and expenses are recorded when a liability is incurred, regardless of the timing of the related cash flows. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider are met. Separate financial statements are provided for governmental funds. A fund financial statement is presented for CAMPO’s only fund, the General Fund. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, CAMPO considers revenues to be available if they are collected within 60 days of the end of the current period, unless collections are delayed beyond a normal time of receipt due to unusual circumstances. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. GASB 54 has provided a classification hierarchy of fund balances based on spending constraints. Unassigned fund balance represents fund balance that has not been assigned to other funds and that has not been restricted, committed, or assigned to specific purposes. Nonspendable fund balance represents amounts that are not in a spendable form. Net position in government-wide financial statements is classified as net investment in capital assets, restricted, and unrestricted. Restricted net position represents constraints on resources that are externally imposed by creditors, grantor, contributors, or laws or regulations of other government, or imposed by law. When both restricted and unrestricted resources are available for use, it is CAMPO’s policy to use restricted resources first, then unrestricted resources as they are needed. De Minimis Rate Used: Y Rate Explanation: The auditee did not elect to use the de minimis cost rate. CAMPO provides pension benefits to its personnel vested as of October 1, 2016 through the City of Austin Employees’ Retirement and Pension Fund (Plan). As of October 1, 2016, CAMPO’s non-vested personnel have been transferred into the Texas County and District Retirement System (System) as employees of Williamson County. Non-vested employees’ contributions were not transferred to the System, however the non-vested employees’ service time may be credited. The System is a defined benefit retirement plan, similar to the previous Plan. CAMPO’s contributions into the System during the year were $268,587. The System is administered by the System Board of Trustees. All employees who qualify are required to pay seven percent of their gross wages to the System through payroll withholdings. The employee vests after eight years of service and is fully funded. The Plan provides retirement, death, disability, and withdrawal benefits. State law governs benefit and contribution provisions. Amendments may be made by the Legislature of the State of Texas.

Title: NOTE 11: RECONCILIATION OF GOVERNMENT - WIDE AND FUND FINANCIAL STATEMENTS Accounting Policies: MEASUREMENT FOCUS, BASIS OF ACCOUNTING AND FINANCIAL STATEMENTS PRESENTATION All revenue is considered program revenue because CAMPO does not receive taxes or other general revenues. The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. All revenue is considered program revenue because CAMPO does not receive taxes or other general revenues. Revenues are recorded as earned and expenses are recorded when a liability is incurred, regardless of the timing of the related cash flows. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider are met. Separate financial statements are provided for governmental funds. A fund financial statement is presented for CAMPO’s only fund, the General Fund. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, CAMPO considers revenues to be available if they are collected within 60 days of the end of the current period, unless collections are delayed beyond a normal time of receipt due to unusual circumstances. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. GASB 54 has provided a classification hierarchy of fund balances based on spending constraints. Unassigned fund balance represents fund balance that has not been assigned to other funds and that has not been restricted, committed, or assigned to specific purposes. Nonspendable fund balance represents amounts that are not in a spendable form. Net position in government-wide financial statements is classified as net investment in capital assets, restricted, and unrestricted. Restricted net position represents constraints on resources that are externally imposed by creditors, grantor, contributors, or laws or regulations of other government, or imposed by law. When both restricted and unrestricted resources are available for use, it is CAMPO’s policy to use restricted resources first, then unrestricted resources as they are needed. De Minimis Rate Used: Y Rate Explanation: The auditee did not elect to use the de minimis cost rate. Ending fund balance-governmental fund ($1,946,486) Capital assets used in governmental activities are not financial resources and, therefore are not reported in the fund statements. 24,777 Federal and state awards receivable collected more than 60 days past year end are deferred in the fund financial statements 2,286,996 Accrued vacation not recorded in the fund statements. (87,600) Right of use asset - lease not reported in the fund financial statements. 1,343,390 Lease liability is not reported in the fund financial statements. (1,457,632) Net position-governmental activities $163,445 Net change in fund balance-governmental ($174,712) Change in federal and state awards receivable collected more than 60 days after year end is not considered available to pay for current period expenditures and therefore, is not recognized in current revenues in the fund statements. 156,606 Depreciation expense is not reflected in the governmental funds, but is recorded in the government-wide financial statements as an expense and an increase to accumulated depreciation. (7,772) Change in accrued vacation not recorded in the fund statements. (13,545) Amortization of right to use lease asset is not reported in the fund financial statements. (153,859) Lease financing principal payments are not reported in the government- wide financial statements as expenses. 38,692 Change in net position-governmental activities ($154,590)

Title: NOTE 12: CAPITAL ASSETS Accounting Policies: MEASUREMENT FOCUS, BASIS OF ACCOUNTING AND FINANCIAL STATEMENTS PRESENTATION All revenue is considered program revenue because CAMPO does not receive taxes or other general revenues. The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. All revenue is considered program revenue because CAMPO does not receive taxes or other general revenues. Revenues are recorded as earned and expenses are recorded when a liability is incurred, regardless of the timing of the related cash flows. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider are met. Separate financial statements are provided for governmental funds. A fund financial statement is presented for CAMPO’s only fund, the General Fund. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, CAMPO considers revenues to be available if they are collected within 60 days of the end of the current period, unless collections are delayed beyond a normal time of receipt due to unusual circumstances. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. GASB 54 has provided a classification hierarchy of fund balances based on spending constraints. Unassigned fund balance represents fund balance that has not been assigned to other funds and that has not been restricted, committed, or assigned to specific purposes. Nonspendable fund balance represents amounts that are not in a spendable form. Net position in government-wide financial statements is classified as net investment in capital assets, restricted, and unrestricted. Restricted net position represents constraints on resources that are externally imposed by creditors, grantor, contributors, or laws or regulations of other government, or imposed by law. When both restricted and unrestricted resources are available for use, it is CAMPO’s policy to use restricted resources first, then unrestricted resources as they are needed. De Minimis Rate Used: Y Rate Explanation: The auditee did not elect to use the de minimis cost rate. Beginning Balance Additions Deletions Ending Balance Capital assets being depreciated: Furniture and equipment $83,188 $0 $0 $83,188 Accumulated depreciation (50,639) (7,772) 0 (58,411) $32,549 ($7,772) $0 $24,777

Title: NOTE 13: RIGHT OF USE ASSET-LEASE Accounting Policies: MEASUREMENT FOCUS, BASIS OF ACCOUNTING AND FINANCIAL STATEMENTS PRESENTATION All revenue is considered program revenue because CAMPO does not receive taxes or other general revenues. The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. All revenue is considered program revenue because CAMPO does not receive taxes or other general revenues. Revenues are recorded as earned and expenses are recorded when a liability is incurred, regardless of the timing of the related cash flows. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider are met. Separate financial statements are provided for governmental funds. A fund financial statement is presented for CAMPO’s only fund, the General Fund. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, CAMPO considers revenues to be available if they are collected within 60 days of the end of the current period, unless collections are delayed beyond a normal time of receipt due to unusual circumstances. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. GASB 54 has provided a classification hierarchy of fund balances based on spending constraints. Unassigned fund balance represents fund balance that has not been assigned to other funds and that has not been restricted, committed, or assigned to specific purposes. Nonspendable fund balance represents amounts that are not in a spendable form. Net position in government-wide financial statements is classified as net investment in capital assets, restricted, and unrestricted. Restricted net position represents constraints on resources that are externally imposed by creditors, grantor, contributors, or laws or regulations of other government, or imposed by law. When both restricted and unrestricted resources are available for use, it is CAMPO’s policy to use restricted resources first, then unrestricted resources as they are needed. De Minimis Rate Used: Y Rate Explanation: The auditee did not elect to use the de minimis cost rate. Beginning Balance Additions Deletions Ending Balance Right of use asset - operating lease $605,842 $1,473,015 ($605,842) $1,473,015 Accumulated amortization (581,608) (153,859) 605,842 (129,625) $24,234 $1,319,156 $0 $1,343,390

Title: NOTE 14: ACCRUED LEAVE Accounting Policies: MEASUREMENT FOCUS, BASIS OF ACCOUNTING AND FINANCIAL STATEMENTS PRESENTATION All revenue is considered program revenue because CAMPO does not receive taxes or other general revenues. The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. All revenue is considered program revenue because CAMPO does not receive taxes or other general revenues. Revenues are recorded as earned and expenses are recorded when a liability is incurred, regardless of the timing of the related cash flows. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider are met. Separate financial statements are provided for governmental funds. A fund financial statement is presented for CAMPO’s only fund, the General Fund. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, CAMPO considers revenues to be available if they are collected within 60 days of the end of the current period, unless collections are delayed beyond a normal time of receipt due to unusual circumstances. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. GASB 54 has provided a classification hierarchy of fund balances based on spending constraints. Unassigned fund balance represents fund balance that has not been assigned to other funds and that has not been restricted, committed, or assigned to specific purposes. Nonspendable fund balance represents amounts that are not in a spendable form. Net position in government-wide financial statements is classified as net investment in capital assets, restricted, and unrestricted. Restricted net position represents constraints on resources that are externally imposed by creditors, grantor, contributors, or laws or regulations of other government, or imposed by law. When both restricted and unrestricted resources are available for use, it is CAMPO’s policy to use restricted resources first, then unrestricted resources as they are needed. De Minimis Rate Used: Y Rate Explanation: The auditee did not elect to use the de minimis cost rate. Beginning Balance Additions Deletions Ending Balance Compensated absences $74,055 $17,982 ($4,437) $87,600