Notes to SEFA
Title: COMPLIANCE TEST
Accounting Policies: THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS HAS BEEN PREPARED ON THE ACCRUAL BASIS OF ACCOUNTING. REVENUES WERE ADJUSTED TO BALANCE THE EXPENDITURES INCURRED FOR EACH PROJECT.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
An extensive compliance test, as required by Title 2 U.S. Code of Federal Regulations(CFR) Part 200, Uniform Administrative requirements, Cost Principles, and Auditrequirements for Federal Awards (Uniform Guidance), was performed on the AlternateEssential Air Service Program, which represent 68% of the total expenditures reflected on the Schedule of Expenditures of Federal Awards.The 40% test for a NON-low-risk auditee was satisfied as follows:Federal Program TitleAlternate Essential Air Service Program 20.901 $935,010Airport Improvement Program and COVID-19 Airports Programs 20.106 $443,282tOTAL $1,378,292X 40%$ 551,317The Alternate Essential Air Service Program and COVID-19 Airports Programs exceed$551,317 and, therefore, represent the only program to which the specific compliancerequirements must be applied.