Audit 45687

Accounting Policies: Note 1 Basis of Presentation The accompanying Schedule of Expenditures of Federal Awards presents the activity of all federal awards programs administered by Southern Tier East Regional Planning Development Board (d/b/a Southern Tier 8), an entity as defined in Note 1 to Southern Tier 8s basic financial statements. Federal awards received directly from federal agencies, as well as federal awards passed through from other government agencies, are included on the Schedule of Expenditures of Federal Awards. Note 2 Basis of Accounting The basis of accounting varies by federal program consistent with the underlying regulations pertaining to each program. The information 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). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in, preparation of the financial statements. Note 3 Allocation of Costs Costs have been allocated to programs based on a reasonable estimate of time spent on operating and loan administration. Loan administration expenses were allocated to the revolving loan funds based on the number of loans being serviced and the amount of work associated with the type of loan. Note 4 Indirect Costs Indirect costs are included in the reported expenditures to the extent they are included in the federal financial reports used as the source for the data presented. Southern Tier 8 has elected not to use the 10% de minimus indirect cost rate. Note 5 Matching Costs Matching costs, such as Southern Tier 8s share of certain program costs, are not included in the reported expenditures. Note 6 Other Disclosures No insurance is carried specifically to cover equipment purchased with federal funds. Any equipment purchased with federal funds has only a nominal value, and is covered by Southern Tier 8s casualty insurance policies. There were no loans or loan guarantees outstanding at year end. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.