Audit 365703

Title: 1. Summary of Significant Accounting Policies Accounting Policies: Basis of Presentation The accompanying Schedule of Expenditures of Federal Awards (SEFA) presents the activity of the federal awards programs administered by Niagara Frontier Transportation Authority (the Authority), an entity described in Note 1 to the Authority’s financial statements. Federal awards received directly from federal agencies, as well as federal awards passed through from other governmental agencies, are included on the SEFA. In accordance with agreements between the Authority and the New York State Department of Transportation, the Authority functions as the “host agency” for the Greater Buffalo Niagara Regional Transportation Council (GBNRTC), the designated Metropolitan Planning Organization for the metro region including Erie and Niagara counties, and Niagara International Transportation Technology Coalition (NITTEC), a regional traffic operations center. As the host agency, the Authority provides certain grant administration and accounting functions to both organizations; consequently, reimbursement grants totaling $7,438,000 administered on behalf of GBNRTC and NITTEC are included in the accompanying SEFA. Basis of Accounting The Authority uses the accrual basis of accounting for each federal program, consistent with the financial statements. The amounts reported as federal expenditures generally were obtained from the appropriate federal financial reports for the applicable programs and periods. The amounts reported in these federal financial records are prepared from records maintained for each program, which are periodically reconciled with the Authority’s financial reporting system. Matching Costs Matching costs, i.e., the Authority’s share of certain program costs, are not included in the reported expenditures. Indirect Costs The Authority has not elected to use the de minimis indirect cost rate allowed by the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: Indirect Costs The Authority has not elected to use the de minimis indirect cost rate allowed by the Uniform Guidance. Basis of Presentation The accompanying Schedule of Expenditures of Federal Awards (SEFA) presents the activity of the federal awards programs administered by Niagara Frontier Transportation Authority (the Authority), an entity described in Note 1 to the Authority’s financial statements. Federal awards received directly from federal agencies, as well as federal awards passed through from other governmental agencies, are included on the SEFA. In accordance with agreements between the Authority and the New York State Department of Transportation, the Authority functions as the “host agency” for the Greater Buffalo Niagara Regional Transportation Council (GBNRTC), the designated Metropolitan Planning Organization for the metro region including Erie and Niagara counties, and Niagara International Transportation Technology Coalition (NITTEC), a regional traffic operations center. As the host agency, the Authority provides certain grant administration and accounting functions to both organizations; consequently, reimbursement grants totaling $7,438,000 administered on behalf of GBNRTC and NITTEC are included in the accompanying SEFA. Basis of Accounting The Authority uses the accrual basis of accounting for each federal program, consistent with the financial statements. The amounts reported as federal expenditures generally were obtained from the appropriate federal financial reports for the applicable programs and periods. The amounts reported in these federal financial records are prepared from records maintained for each program, which are periodically reconciled with the Authority’s financial reporting system. Matching Costs Matching costs, i.e., the Authority’s share of certain program costs, are not included in the reported expenditures. Indirect Costs The Authority has not elected to use the de minimis indirect cost rate allowed by the Uniform Guidance.