Audit 48333

Title: Note 2: Contingencies Accounting Policies: The accounting policies and presentation of the schedule of expenditures of federal awards and the schedule of expenditures of state financial assistance of the Pinellas County Metropolitan Planning Organization (the "MPO") have been designed to conform to the accounting principles generally accepted in the United States of America, and the reporting and compliance 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"), Section 215.97, Florida Statutes, and Chapter 10.550, Rules of the Auditor General of the state of Florida. Reporting Entity - Federal awards received directly from federal agencies, the state of Florida, or pass-through entities are included on the schedule of expenditures of federal awards to satisfy audit requirements of the Uniform Guidance. The schedule of expenditures of federal awards includes all federal awards expended by the MPO. Federal expenditures reported on this schedule are reported on the accrual basis of accounting and are recognized following the cost principles contained in the Uniform Guidance. Basis of Accounting - Basis of accounting refers to when expenditures are recognized in the accounts and reported in the financial statements. Basis of accounting relates to the timing of the measurements made, regardless of the measurement focus applied. The accrual basis of accounting is followed for the schedule of expenditures of federal awards and the schedule of expenditures of state financial assistance. State financial assistance received from the state of Florida are included in the schedule of expenditures of state financial assistance are included as additional analysis. The schedule of expenditures of state financial assistance includes all state awards expended by the MPO. State expenditures reported on this schedule are reported on the accrual basis of accounting and are recognized following the cost principles contained in the Florida statutes. De Minimis Rate Used: N Rate Explanation: The MPO did not allocate indirect costs for reimbursement of grant expenditures for the fiscal year ended September 30, 2022. The MPO has elected not to use the 10% de-minimus indirect cost rate as allowed under the Uniform Guidance. Grant monies received and disbursed by the MPO are for specific purposes and are subject to review and audit by the grantor agencies. Such audits may result in requests for reimbursement due to disallowed expenditures. Based upon prior experience, the MPO does not believe that such disallowances, if any, would have a material effect on the financial position of the MPO.