Notes to SEFA
Accounting Policies: The Lehigh and Northampton Transportation Authority (the Authority) maintains its accounting records in accordance with accounting principles generally accepted in the United States of America. The financial information contained in the schedules of expenditures of federal awards and Pennsylvania Department of Human Services expenditures has been prepared on the basis of accounting practices prescribed under the terms of Operating Assistance, Planning, and Capital Grants with the Federal Transit Administration. The practices differ from accounting principles generally accepted in the United States of America as follows:
A. Depreciation is not allowed as a project cost.
B. Certain expenditures that would not normally be included in the determination of net income are either allowable or unallowable for project purposes.
De Minimis Rate Used: N
Rate Explanation: Indirect cost of the Authority was based on actual time. The Authority did not elect to utilize the ten percent de minimis indirect cost rate.