Audit 48355

Accounting Policies: The accompanying schedules of expenditures of federal and state awards (the "Schedules") include the federal and state grant activity of the Hill Country Transit District (HCTD) under programs of the federal and state governments for the year ended December 31, 2022. The information in the Schedules 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 (the "Uniform Guidance"), and Texas Grant Management Standards. Because the Schedules present only a selected portion of the operations of HCTD, they are not intended to and do not present the financial position, changes in net position, or cash flows of HCTD. Expenditures reported in the Schedules are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, and Texas Grant Management Standards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The pass through entity identifying numbers are presented where available. HCTD has elected not to use the 10 percent de minimis indirect cost rate to recover indirect costs, as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.