Notes to SEFA
Accounting Policies: NOTE A: BASIS OF ACCOUNTINGThe schedule of expenditures of federal awards is prepared on the accrual basis of accounting.NOTE B: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of ActivitiesSHOW BUS is a multi-county transportation organization funded primarily from federal government sources to aid citizens of Livingston, McLean, Ford, Iroquois, DeWitt, Macon, Kankakee, Mason, and Logan counties who cannot provide their own transportation.Use of EstimatesThe preparation of financial statements in conformity with generally accepted accounting principles requires the use of estimates based on management's knowledge and experience. Due to their prospective nature, actual results could differ from those estimates.Grants ExpendituresGrant expenditures are recognized when they are incurred. The Downstate Public Transportation Operating Assistance, Job Access and Reverse Commute Operating, and Section 5311 grants are accounted for as purchases of service agreements.Support RecognitionThe Organization received the use of vehicles and small equipment as gifts-in-kind from McLean County, Kankakee County, and Logan County in 2021. The use of these vehicles and equipment is valued at the net present value of the estimated annual fair value and is included as an expense in the Schedule of Expenditures of Federal Awards.NOTE C: FEDERAL INDIRECT COST RATEThe Organization has not elected to use the 10% de minimis cost rate.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.