Audit 43763

Accounting Policies: Note A Basis of Presentation: The accompanying schedule of expenditures of federal awards includes the federal grant activity ofSouth Central Regional Council of Governments, and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). The Schedulepresents only a selected portion of the operations of South Central Regional Council of Governments. It is not intended to, and does not present, the financial position or changes in net assets of South Central Regional Council of Governments.Note B Summary of Significant Accounting Policies: Expenditures reported on the Schedule are reported on the 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: Both Rate Explanation: The South Central Regional Council of Governments uses an indirect cost rate as required undertheir Unified Planning Work Program agreement (UPWP) with the Connecticut Department ofTransportation, the Federal Highway Administration and the Federal Transit Administration. TheUPWP provides for a provisional indirect cost rate for reimbursements during the year with arecalculation at the end of the year to an actual amount and retroactive application to all requestsduring the year. The indirect cost rate for the year ended June 30, 2022, was 135.74%. The Economic Adjustment Assistance, CFDA 11.307, utilizes the 10 percent de minimis indirect cost rate. Expenditures are recognized following the cost principles prescribed by Uniform Guidance wherein certain types of expenditures are not allowed or are limited as to reimbursement.