Audit 47267

Title: Relationship to Federal Financial Reports Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of the Atlanta Regional Commission (the Commission) under programs of the federal government for the year ended December 31, 2022. Because the Schedule presents only a selected portion of the operations of the Commission, it is not intended to and does not present the financial position, changes in financial position, or cash flows of the Commission.The Schedule is presented using the modified accrual basis of accounting, which is described in Note 1C of the Commissions financial statements. Expenditures are recognized following the applicable cost principles contained in either Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) or the OMB Circular A-87, Cost Principles for State, Local, and Indian Tribal Governments, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: Agency-wide central support service costs are recorded in the Commissions General fund as indirect costs and are recovered from grantor agencies, through the Commissions special revenue funds and proprietary funds based upon a predetermined indirect cost rate. The Commissions indirect cost plan for 2022 established a fixed rate of 26.7% for direct salaries, wages, and fringe benefits. Departmental indirect costs for the Community Services and Livable Communities departments are recovered from grantor agencies through the cost centers managed by these departments within special revenue funds and proprietary funds based upon a predetermined indirect cost rate for each department. The Commissions indirect cost plan for 2022 established a fixed rate of 6.6% and 11.9% for the Community Services and Livable Communities departments, respectively. The indirect costs rates are applied to the labor base, made up of salaries, wages, and fringe benefits charged directly to the cost centers. Amounts reported in the accompanying Schedule agree with the amounts reported in the related federal financial reports.