Audit 362911

Accounting Policies: Summary of Significant Accounting Policies Reporting Entity The Schedule of Expenditures of Federal Awards presents the activities of federal award programs expended by the Metropolitan Council of the Twin Cities Area (Metropolitan Council). The Metropolitan Council’s reporting entity is defined in Note I.A to the financial statements. Basis of Presentation The accompanying Schedule of Expenditures of Federal Awards includes the federal award activity of the Metropolitan Council under programs of the federal government for the year ended December 31, 2024. 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 Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule of Expenditures of Federal Awards presents only a selected portion of the operations of the Metropolitan Council, it is not intended to and does not present the financial position, changes in net position, or cash flows of the Metropolitan Council. Expenditures reported on the schedule are reported on the basis of accounting used by the individual funds of the Metropolitan Council. Governmental funds use the modified accrual basis of accounting. Proprietary funds use the accrual basis. 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. Negative amounts shown on the schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: De Minimis Cost Rate The Metropolitan Council has elected not to use the ten percent de minimis indirect cost rate nor the 15 percent de minimis indirect cost rate, as applicable, allowed under the Uniform Guidance.