Audit 41575

Accounting Policies: NOTE 1 - Basis of PresentationThe Schedule of Expenditures of Federal Awards (the Schedule) presents the activity of all Federal award programs of the Authority. All Federal awards received directly from Federal agencies as well as Federal awards passed through other governmental agencies or other entities are included in the Schedule. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200. Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards (Uniform Guidance) Because the Schedule presents only a select position, changes in net position or cash flows of the Authority. NOTE 2 - Significant Accounting PoliciesThe Authoritys Schedule of Federal Awards has been prepared on the accrual basis of accounting. Grant revenue is recognized on the modified accrual bases and, when all applicable eligibility requirements are met in accordance with the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The criteria established by GASB for accrual-bases recognition require that all eligibility requirements must be met, and the revenues must be available. Available means that the government has collected the revenues in the current period or expects to collect them soon enough after the end of the period to use them to pay liabilities of the current period. Resources received or recognized as receivables before the time requirements are met are reported as deferred revenues. The Authority has elected not to use the 10-percent de minims indirect cost rate allowed under the Uniform Guidance.NOTE 3 - ContingenciesIn connection with various Federal grant programs the Authority is obligated to administer related programs and spend the funds in accordance with regulatory restrictions and is subject to audit by grantor agencies and other auditors. In cases of noncompliance, the agencies involved may require the Authority to refund program funds. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.