Title: General
Accounting Policies: GAAP
De Minimis Rate Used: N
Rate Explanation: The District has elected not to utilize the 10% de minimis indirect cost rate.
The accompanying Schedules of Expenditures of Federal Awards and State Financial
Assistance present the activity of all federal awards and state financial assistance programs
of the Sparta Township School District. The District is defined in Note 1 (A) to the
District's basic financial statements. All federal awards and state financial assistance
received directly from federal and state agencies, as well as federal awards and state
financial assistance passed through other government agencies, is included on the Schedules
of Expenditures of Federal Awards and State Financial Assistance.
Title: Basis of accounting
Accounting Policies: GAAP
De Minimis Rate Used: N
Rate Explanation: The District has elected not to utilize the 10% de minimis indirect cost rate.
The accompanying Schedules of Expenditures of Federal Awards and State Financial
Assistance are presented using the budgetary basis of accounting with the exception of
programs recorded in the food service fund, which are presented using the accrual basis of
accounting. These bases of accounting are described in Notes 1 (C) and 1 (D) to the
District's basic financial statements.
Title: Relationship to financial statements
Accounting Policies: GAAP
De Minimis Rate Used: N
Rate Explanation: The District has elected not to utilize the 10% de minimis indirect cost rate.
The basic financial statements present the general fund and special revenue fund on a
GAAP basis. Budgetary comparison statements or schedules are presented for the general
fund and special revenue fund to demonstrate finance-related legal compliance in which
certain revenue is permitted by law or grant agreement to be recognized in the audit year,
whereas for GAAP reporting, revenue is not recognized until the subsequent year or when
expenditures have been made.
The general fund is presented in the accompanying schedules on the modified accrual basis
with the exception of the revenue recognition of the one or more deferred June state aid
payments in the current budget year, which is mandated pursuant to N.J.S.A. 18A:22-44.2.
For GAAP purposes payments are not recognized until the subsequent budget year due to
the state deferral and recording of the one or more June state aid payments in the subsequent
year. The special revenue fund is presented in the accompanying schedules on the budgetary
basis which recognizes encumbrances as expenditures and also recognizes the related
revenues, whereas the GAAP basis does not.
The net adjustment to reconcile from the budgetary basis to the GAAP basis is $35,724 for
the general fund and ($36,215) for the special revenue fund. See Exhibit C-3 for a
reconciliation of the budgetary basis to the modified accrual basis of accounting for the
general and special revenue funds.
Title: Relationship to financial statements
Accounting Policies: GAAP
De Minimis Rate Used: N
Rate Explanation: The District has elected not to utilize the 10% de minimis indirect cost rate.
Financial assistance revenues are reported in the District’s basic financial statements on a
GAAP basis as follows:
Federal State Total
General fund $ 9,582 $ 22,693,304 $ 22,702,886
Special revenue fund 1,516,610 766,047 2,282,657
Debt service fund - 570,702 570,702
Food service fund 434,618 12,130 446,748
Total awards and
financial assistance
$ 1,960,810 $ 24,042,183 $ 26,002,993
Title: Relationship to federal and state financial reports
Accounting Policies: GAAP
De Minimis Rate Used: N
Rate Explanation: The District has elected not to utilize the 10% de minimis indirect cost rate.
Amounts reported in the accompanying schedules agree with the amounts reported in the related federal and state financial reports.
Title: Other
Accounting Policies: GAAP
De Minimis Rate Used: N
Rate Explanation: The District has elected not to utilize the 10% de minimis indirect cost rate.
Revenues and expenditures reported under the USDA Commodities Program represent current year distributions, respectively. The amount reported as TPAF Pension Contributions represents the amount paid by the state on behalf of the District for the fiscal year ended June 30, 2023. TPAF Social Security contribution represents the amount reimbursed by the State for the employer's share of Social Security contributions for TPAF members for the fiscal year ended June 30, 2023.
Title: Indirect costs
Accounting Policies: GAAP
De Minimis Rate Used: N
Rate Explanation: The District has elected not to utilize the 10% de minimis indirect cost rate.
The District has elected not to utilize the 10% de minimis indirect cost rate.