Audit 7350

Title: BASIS OF PRESENTATION Accounting Policies: Expenditures in the accompanying Schedule of Expenditures of Federal Awards are reported on the modified accrual basis of accounting. The modified accrual basis of accounting is described in Note 3 of the financial statements. Cost reimbursement federal grants are considered to be earned to the extent of expenditures made under the provisions of the grant. The format for the Schedule of Expenditures of Federal Awards has been prescribed by the Uniform Guidance. Such format includes revenue and expenditures recognized in the Central Texas Rural Transit District City and Rural Rides' financial statements. Central Texas Rural Transit District City and Rural Rides did not elect to use the 10 percent de minimis indirect cost rate. The format for the Schedule of Expenditures of Federal Awards has been prescribed by the Uniform Guidance. Such format includes revenue and expenditures recognized in the Central Texas Rural Transit District City and Rural Rides' financial statements. Central Texas Rural Transit District City and Rural Rides did not elect to use the 10 percent de minimis indirect cost rate. De Minimis Rate Used: N Rate Explanation: Central Texas Rural Transit District City and Rural Rides did not elect to use the 10 percent de minimis indirect cost rate. The accompanying Schedule of Expenditures of Federal Awards presents the activity of all applicable federal awards of the Central Texas Rural Transit District City and Rural Rides for the year ended August 31, 2023. The District's reporting entity is defined in Note 1 of the financial statements. Federal awards received directly from federal agencies, as well as federal awards passed through other governmental agencies are included on the Schedule of Expenditures of Federal Awards. The information 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). Because the schedule presents only a selected portion of the operations of the District, it is not intended to and does not present the financial position or change in net position of the District.

Title: SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: Expenditures in the accompanying Schedule of Expenditures of Federal Awards are reported on the modified accrual basis of accounting. The modified accrual basis of accounting is described in Note 3 of the financial statements. Cost reimbursement federal grants are considered to be earned to the extent of expenditures made under the provisions of the grant. The format for the Schedule of Expenditures of Federal Awards has been prescribed by the Uniform Guidance. Such format includes revenue and expenditures recognized in the Central Texas Rural Transit District City and Rural Rides' financial statements. Central Texas Rural Transit District City and Rural Rides did not elect to use the 10 percent de minimis indirect cost rate. The format for the Schedule of Expenditures of Federal Awards has been prescribed by the Uniform Guidance. Such format includes revenue and expenditures recognized in the Central Texas Rural Transit District City and Rural Rides' financial statements. Central Texas Rural Transit District City and Rural Rides did not elect to use the 10 percent de minimis indirect cost rate. De Minimis Rate Used: N Rate Explanation: Central Texas Rural Transit District City and Rural Rides did not elect to use the 10 percent de minimis indirect cost rate. Expenditures in the accompanying Schedule of Expenditures of Federal Awards are reported on the modified accrual basis of accounting. The modified accrual basis of accounting is described in Note 3 of the financial statements. Cost reimbursement federal grants are considered to be earned to the extent of expenditures made under the provisions of the grant.

Title: SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: Expenditures in the accompanying Schedule of Expenditures of Federal Awards are reported on the modified accrual basis of accounting. The modified accrual basis of accounting is described in Note 3 of the financial statements. Cost reimbursement federal grants are considered to be earned to the extent of expenditures made under the provisions of the grant. The format for the Schedule of Expenditures of Federal Awards has been prescribed by the Uniform Guidance. Such format includes revenue and expenditures recognized in the Central Texas Rural Transit District City and Rural Rides' financial statements. Central Texas Rural Transit District City and Rural Rides did not elect to use the 10 percent de minimis indirect cost rate. The format for the Schedule of Expenditures of Federal Awards has been prescribed by the Uniform Guidance. Such format includes revenue and expenditures recognized in the Central Texas Rural Transit District City and Rural Rides' financial statements. Central Texas Rural Transit District City and Rural Rides did not elect to use the 10 percent de minimis indirect cost rate. De Minimis Rate Used: N Rate Explanation: Central Texas Rural Transit District City and Rural Rides did not elect to use the 10 percent de minimis indirect cost rate. The format for the Schedule of Expenditures of Federal Awards has been prescribed by the Uniform Guidance. Such format includes revenue and expenditures recognized in the Central Texas Rural Transit District City and Rural Rides' financial statements. Central Texas Rural Transit District City and Rural Rides did not elect to use the 10 percent de minimis indirect cost rate.

Title: REVENUE RECONCILIATION Accounting Policies: Expenditures in the accompanying Schedule of Expenditures of Federal Awards are reported on the modified accrual basis of accounting. The modified accrual basis of accounting is described in Note 3 of the financial statements. Cost reimbursement federal grants are considered to be earned to the extent of expenditures made under the provisions of the grant. The format for the Schedule of Expenditures of Federal Awards has been prescribed by the Uniform Guidance. Such format includes revenue and expenditures recognized in the Central Texas Rural Transit District City and Rural Rides' financial statements. Central Texas Rural Transit District City and Rural Rides did not elect to use the 10 percent de minimis indirect cost rate. The format for the Schedule of Expenditures of Federal Awards has been prescribed by the Uniform Guidance. Such format includes revenue and expenditures recognized in the Central Texas Rural Transit District City and Rural Rides' financial statements. Central Texas Rural Transit District City and Rural Rides did not elect to use the 10 percent de minimis indirect cost rate. De Minimis Rate Used: N Rate Explanation: Central Texas Rural Transit District City and Rural Rides did not elect to use the 10 percent de minimis indirect cost rate. Governmental transportation revenue received from the Texas Department of Transportation is composed of the following:

Title: MEDICAL TRANSPORTATION Accounting Policies: Expenditures in the accompanying Schedule of Expenditures of Federal Awards are reported on the modified accrual basis of accounting. The modified accrual basis of accounting is described in Note 3 of the financial statements. Cost reimbursement federal grants are considered to be earned to the extent of expenditures made under the provisions of the grant. The format for the Schedule of Expenditures of Federal Awards has been prescribed by the Uniform Guidance. Such format includes revenue and expenditures recognized in the Central Texas Rural Transit District City and Rural Rides' financial statements. Central Texas Rural Transit District City and Rural Rides did not elect to use the 10 percent de minimis indirect cost rate. The format for the Schedule of Expenditures of Federal Awards has been prescribed by the Uniform Guidance. Such format includes revenue and expenditures recognized in the Central Texas Rural Transit District City and Rural Rides' financial statements. Central Texas Rural Transit District City and Rural Rides did not elect to use the 10 percent de minimis indirect cost rate. De Minimis Rate Used: N Rate Explanation: Central Texas Rural Transit District City and Rural Rides did not elect to use the 10 percent de minimis indirect cost rate. The District also participates in Medical Transportation Programs that are reimbursed on a fee basis. Total receipts for the year ended August 31, 2023 were $1,508,918 for the medical transportation program.

Title: SUBRECIPIENTS Accounting Policies: Expenditures in the accompanying Schedule of Expenditures of Federal Awards are reported on the modified accrual basis of accounting. The modified accrual basis of accounting is described in Note 3 of the financial statements. Cost reimbursement federal grants are considered to be earned to the extent of expenditures made under the provisions of the grant. The format for the Schedule of Expenditures of Federal Awards has been prescribed by the Uniform Guidance. Such format includes revenue and expenditures recognized in the Central Texas Rural Transit District City and Rural Rides' financial statements. Central Texas Rural Transit District City and Rural Rides did not elect to use the 10 percent de minimis indirect cost rate. The format for the Schedule of Expenditures of Federal Awards has been prescribed by the Uniform Guidance. Such format includes revenue and expenditures recognized in the Central Texas Rural Transit District City and Rural Rides' financial statements. Central Texas Rural Transit District City and Rural Rides did not elect to use the 10 percent de minimis indirect cost rate. De Minimis Rate Used: N Rate Explanation: Central Texas Rural Transit District City and Rural Rides did not elect to use the 10 percent de minimis indirect cost rate. There were no subrecipients of the federal expenditures presented in the accompanying Schedule of Expenditures of Federal Awards.