Audit 37648

Title: Basis of Presentation Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. 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. De Minimis Rate Used: N Rate Explanation: The Commission has elected to apply an indirect cost recovery rate approved by the Virginia Department of Transportation and has elected not to use the 10 percent de minimus indirect cost rate allowed under the Uniform Guidance. The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federalaward activity of the Hampton Roads Planning District Commission (the Commission) under programs ofthe federal government for the year ended June 30, 2022. The information in this Schedule is presented inaccordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, UniformAdministrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (UniformGuidance). Because the Schedule presents only a selected portion of the operations of the Commission, itis not intended to and does not present the financial position or changes in net position of theCommission.Federal Financial Assistance The Single Audit Act Amendments of 1996 (Public Law 104-156) andUniform Guidance define federal financial assistance as grants, loans, loan guarantees, property(including donated surplus property), cooperative agreements, interest subsidies, insurance, foodcommodities, direct appropriations or other assistance. Federal financial assistance does not includedirect federal cash assistance to individuals.Direct Payments Assistance received directly from the Federal government is classified as directpayments on the Schedule.Pass-through Payments Assistance received in a pass-through relationship from entities other than theFederal government is classified as pass-through payments on the Schedule.Major Programs The Single Audit Act Amendments of 1996 and Uniform Guidance establish thecriteria to be used in defining major programs. Major programs for the Commission and its componentunits were determined using a risk-based approach in accordance with Uniform Guidance.Federal Assistance Listing The Federal Assistance Listing is a government-wide compendium ofindividual federal programs. Each program included in the catalog is assigned a five-digit programidentification number (Federal Assistance Listing Number), which is reflected in the Schedule.Cluster of Programs Closely related programs that share common compliance requirements are groupedinto clusters of programs. A cluster of programs is considered as one federal program for determiningmajor programs. The following is the cluster administered by Commission: Highway Planning andConstruction Cluster (Federal Highway Program)