Audit 40118

Accounting Policies: Note 1 Reporting EntityThis report on Federal Awards includes the federal awards of the Rockford Mass Transit District. Thereporting entity for the Rockford Mass Transit District is based upon criteria established by theGovernmental Accounting Standards Board.Note 2 Basis of PresentationThe accompanying schedule of expenditures of federal awards (the Schedule) includes the federalaward activity of the Rockford Mass Transit District under programs of the federal government forthe year ended June 30, 2022. The information in this Schedule is presented in accordance with theTitle 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles,and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only aselected portion of the operations of the Rockford Mass Transit District, it is not intended to and does notpresent the financial position, changes in net position or cash flows of the Rockford Mass Transit District.The accounting records of the District's grant programs are maintained on the accrual basis ofaccounting. Expenditures are recorded when the liability is incurred and revenues are recorded asearned. Such expenditures are recognized following the cost principles contained in the UniformGuidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.Negative amounts shown on the schedule represent adjustments or credits made in the normal course ofbusiness to amounts reported as expenditures in prior years. Pass-through entity identifying numbers arepresented where available.Note 3 Description of the Major ProgramThere was one major program for the year ended June 30, 2022 which included the Federal TransitCluster. The Federal Transit Cluster includes the Federal Transit Formula Grants (CFDA #20.507),awarded by the Federal Transit Administration U.S. Department of Transportation to the Rockford MassTransit District for the purpose of financing capital projects and supporting public transportation servicesin urbanized areas.Note 4 Relationship to Basic Financial StatementsFederal financial capital and operating assistance is reported in the Rockford Mass Transit District'sbasic financial statements as follows:Federal Operating Subsidy $ 3,169,241Federal Capital Contributions 804,263Total Federal Schedule of Expenditures of FederalAwards $ 3,973,504Federal Capital Grant Contributions $ 804,263State and Local Capital Grant Contributions 5,221,527Total Capital Contributions per the Basic FinancialStatements $ 6,025,790 De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.