Title: Note 1. Basis of Presentation
Accounting Policies: The accompanying schedules of expenditures of federal awards and state financial assistance are presented using
the budgetary basis of accounting with the following exception: programs recorded in the enterprise fund are
presented using the accrual basis of accounting and programs recorded in the capital projects fund are presented
using the modified accrual basis of accounting. These bases of accounting are described in Note 1 to the
Commission’s basic financial statements. The information in this schedule is presented in accordance with the
requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative
Requirements, Cost Principles, and Audit Requirements for Federal Awards and New Jersey OMB’s Circular 15-
08, Single Audit Policy for Recipients of Federal Grants, State Grants and State Aid . Therefore, some amounts
presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial
statements.
The Commission did not elect the 10-percent de minimis indirect cost rate as discussed in 2 CFR 200.414.
FINANCIAL ASSISTANCE
The amount reported as Teacher's Pension and Annuity Fund (TPAF) Pension Contributions represents the
amount paid by the state on behalf of the Commission for the year ended June 30, 2023. TPAF Social Security
Contributions represents the amount reimbursed by the state for the employer’s share of social security
contributions for TPAF members for the year ended June 30, 2023.
De Minimis Rate Used: N
Rate Explanation: The School District did not elect the 10-percent de minimis indirect cost rate as discussed in 2 CFR 200.414.
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 Monmouth-Ocean Educational Services
Commission (Commission). The Commission is defined in Note 1 of the basic financial statements. The
information in these schedules is presented in accordance with the requirements of Title 2 U.S. Code of Federal
Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements
for Federal Awards (Uniform Guidance) and New Jersey OMB’s Circular 15-08, Single Audit Policy for
Recipients of Federal Grants, State Grants and State Aid . All federal and state awards 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 schedule of expenditures of federal awards and state financial assistance.
Title: Note 2. Summary of Significant Accounting Policies
Accounting Policies: The accompanying schedules of expenditures of federal awards and state financial assistance are presented using
the budgetary basis of accounting with the following exception: programs recorded in the enterprise fund are
presented using the accrual basis of accounting and programs recorded in the capital projects fund are presented
using the modified accrual basis of accounting. These bases of accounting are described in Note 1 to the
Commission’s basic financial statements. The information in this schedule is presented in accordance with the
requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative
Requirements, Cost Principles, and Audit Requirements for Federal Awards and New Jersey OMB’s Circular 15-
08, Single Audit Policy for Recipients of Federal Grants, State Grants and State Aid . Therefore, some amounts
presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial
statements.
The Commission did not elect the 10-percent de minimis indirect cost rate as discussed in 2 CFR 200.414.
FINANCIAL ASSISTANCE
The amount reported as Teacher's Pension and Annuity Fund (TPAF) Pension Contributions represents the
amount paid by the state on behalf of the Commission for the year ended June 30, 2023. TPAF Social Security
Contributions represents the amount reimbursed by the state for the employer’s share of social security
contributions for TPAF members for the year ended June 30, 2023.
De Minimis Rate Used: N
Rate Explanation: The School District did not elect the 10-percent de minimis indirect cost rate as discussed in 2 CFR 200.414.
The accompanying schedules of expenditures of federal awards and state financial assistance are presented using
the budgetary basis of accounting with the following exception: programs recorded in the enterprise fund are
presented using the accrual basis of accounting and programs recorded in the capital projects fund are presented
using the modified accrual basis of accounting. These bases of accounting are described in Note 1 to the
Commission’s basic financial statements. The information in this schedule is presented in accordance with the
requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative
Requirements, Cost Principles, and Audit Requirements for Federal Awards and New Jersey OMB’s Circular 15-
08, Single Audit Policy for Recipients of Federal Grants, State Grants and State Aid . Therefore, some amounts
presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial
statements. The Commission did not elect the 10-percent de minimis indirect cost rate as discussed in 2 CFR 200.414.
FINANCIAL ASSISTANCE
The amount reported as Teacher's Pension and Annuity Fund (TPAF) Pension Contributions represents the
amount paid by the state on behalf of the Commission for the year ended June 30, 2023. TPAF Social Security
Contributions represents the amount reimbursed by the state for the employer’s share of social security
contributions for TPAF members for the year ended June 30, 2023
Title: Note 3. Relationship to Basic Financial Statements
Accounting Policies: The accompanying schedules of expenditures of federal awards and state financial assistance are presented using
the budgetary basis of accounting with the following exception: programs recorded in the enterprise fund are
presented using the accrual basis of accounting and programs recorded in the capital projects fund are presented
using the modified accrual basis of accounting. These bases of accounting are described in Note 1 to the
Commission’s basic financial statements. The information in this schedule is presented in accordance with the
requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative
Requirements, Cost Principles, and Audit Requirements for Federal Awards and New Jersey OMB’s Circular 15-
08, Single Audit Policy for Recipients of Federal Grants, State Grants and State Aid . Therefore, some amounts
presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial
statements.
The Commission did not elect the 10-percent de minimis indirect cost rate as discussed in 2 CFR 200.414.
FINANCIAL ASSISTANCE
The amount reported as Teacher's Pension and Annuity Fund (TPAF) Pension Contributions represents the
amount paid by the state on behalf of the Commission for the year ended June 30, 2023. TPAF Social Security
Contributions represents the amount reimbursed by the state for the employer’s share of social security
contributions for TPAF members for the year ended June 30, 2023.
De Minimis Rate Used: N
Rate Explanation: The School District did not elect the 10-percent de minimis indirect cost rate as discussed in 2 CFR 200.414.
The basic financial statements present the general fund and special revenue fund in accordance with accounting
principles generally accepted (GAAP) in the United States of America. Budgetary comparison statements or
schedules (RSI) 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 grant accounting
budgetary basis, which recognizes encumbrances as expenditures and also recognizes the related revenues, whereas
the GAAP basis does not. The special revenue fund also recognizes the one or more state aid June payments in the
current budget year, consistent with N.J.S.A. 18A:22-4.2.
The net adjustment to reconcile from the budgetary basis to the GAAP basis is ($2,017) for the special revenue
fund. See Exhibit C-3 Note A of the basic financial statements, for a reconciliation of the budgetary basis to the
modified accrual basis of accounting for the general and special revenue funds. Awards and financial assistance
expenditures reported in the Commission’s basic financial statements on a GAAP basis are presented as follows:
Title: Note 4. Relationship to Federal and State Financial Reports
Accounting Policies: The accompanying schedules of expenditures of federal awards and state financial assistance are presented using
the budgetary basis of accounting with the following exception: programs recorded in the enterprise fund are
presented using the accrual basis of accounting and programs recorded in the capital projects fund are presented
using the modified accrual basis of accounting. These bases of accounting are described in Note 1 to the
Commission’s basic financial statements. The information in this schedule is presented in accordance with the
requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative
Requirements, Cost Principles, and Audit Requirements for Federal Awards and New Jersey OMB’s Circular 15-
08, Single Audit Policy for Recipients of Federal Grants, State Grants and State Aid . Therefore, some amounts
presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial
statements.
The Commission did not elect the 10-percent de minimis indirect cost rate as discussed in 2 CFR 200.414.
FINANCIAL ASSISTANCE
The amount reported as Teacher's Pension and Annuity Fund (TPAF) Pension Contributions represents the
amount paid by the state on behalf of the Commission for the year ended June 30, 2023. TPAF Social Security
Contributions represents the amount reimbursed by the state for the employer’s share of social security
contributions for TPAF members for the year ended June 30, 2023.
De Minimis Rate Used: N
Rate Explanation: The School District did not elect the 10-percent de minimis indirect cost rate as discussed in 2 CFR 200.414.
Amounts reported in the accompanying schedules agree with the amounts reported in the related federal and state
financial reports.
Title: Note 5. Federal and State Loans Outstanding
Accounting Policies: The accompanying schedules of expenditures of federal awards and state financial assistance are presented using
the budgetary basis of accounting with the following exception: programs recorded in the enterprise fund are
presented using the accrual basis of accounting and programs recorded in the capital projects fund are presented
using the modified accrual basis of accounting. These bases of accounting are described in Note 1 to the
Commission’s basic financial statements. The information in this schedule is presented in accordance with the
requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative
Requirements, Cost Principles, and Audit Requirements for Federal Awards and New Jersey OMB’s Circular 15-
08, Single Audit Policy for Recipients of Federal Grants, State Grants and State Aid . Therefore, some amounts
presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial
statements.
The Commission did not elect the 10-percent de minimis indirect cost rate as discussed in 2 CFR 200.414.
FINANCIAL ASSISTANCE
The amount reported as Teacher's Pension and Annuity Fund (TPAF) Pension Contributions represents the
amount paid by the state on behalf of the Commission for the year ended June 30, 2023. TPAF Social Security
Contributions represents the amount reimbursed by the state for the employer’s share of social security
contributions for TPAF members for the year ended June 30, 2023.
De Minimis Rate Used: N
Rate Explanation: The School District did not elect the 10-percent de minimis indirect cost rate as discussed in 2 CFR 200.414.
At June 30, 2023, the Commission is not the guarantor of any loans outstanding.