Notes to SEFA
Accounting Policies: NOTE 1. SIGNIFICANT ACCOUNTING POLICIESBasis of PresentationThe Schedule of Expenditures of Federal Awards is prepared using the accrual basis of accounting.Measurement FocusThe determination of when an award is expended is based on when the activity related to the awardoccurred.Program Type DeterminationType A programs are defined as federal programs with federal expenditures exceeding $750,000. Thethreshold of $750,000 was used in distinguishing between Type A and Type B programs.Method of Major Program SelectionThe risk-based approach was used in the selection of federal programs to be tested as majorprograms. The Authority did not qualify as a low-risk auditee for the fiscal year ended June 30, 2022.De Minimis Indirect Cost RateDuring the year ended June 30, 2022, the Authority did not use the de Minimis indirect cost rate. TheAuthority charges indirect costs to all federal programs using a cognizant agency approved indirectcost rate. The Federal Transit Administration approved a 34.52% fixed indirect cost rate subject toannual carryforward adjustments on March 31, 2017. The Authoritys adjusted rate was 35.66% for theperiod covering July 1, 2021 through December 31, 2021, and 24.73% for the period coveringJanuary 1, 2022 through June 30, 2022. The rate is applied to direct labor and benefits.Common Cost MethodologyThe Authority allocates transportation expenses attributable to more than one program to the Section5307 and 5311 programs. Expenses are allocated based on revenue miles and hours in line with aSouth Carolina Department of Transportation Office of Public Transit authorized methodology. Therewere no changes to routes from the prior year.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.