Title: Relationship to Federal and State Financial Reports
Accounting Policies: The accompanying schedules of expenditures of financial assistance present the activity of all federal and state financial assistance programs of the Borough of Bound Brook, County of Somerset, New Jersey. All federal and state financial assistance received directly from federal or state agencies, as well as federal financial assistance passed through other governmental agencies is included on the Schedule of Expenditures of Federal Awards and State Financial Assistance. The accompanying schedules of expenditures of financial assistance are presented on the prescribed basis of accounting, modified accrual basis with certain exceptions, prescribed by the Division of Local Government Services, Department of Community Affairs, State of New Jersey, that demonstrates compliance with the budget laws of New Jersey, which is a comprehensive basis of accounting, other then U.S. generally accepted accounting principles. The basis of accounting, with exception, is described in Note 1 to the Boroughs financial statements - regulatory basis. The Borough has elected not to use the 10 percent de minimus indirect cost rate as allowed under the uniform Guidance.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
Amounts reported in the accompanying schedules of expenditures agree with the amounts reported in the related federal and state financial report.
Title: Relationship to Financial Statements- Regulatory Basis
Accounting Policies: The accompanying schedules of expenditures of financial assistance present the activity of all federal and state financial assistance programs of the Borough of Bound Brook, County of Somerset, New Jersey. All federal and state financial assistance received directly from federal or state agencies, as well as federal financial assistance passed through other governmental agencies is included on the Schedule of Expenditures of Federal Awards and State Financial Assistance. The accompanying schedules of expenditures of financial assistance are presented on the prescribed basis of accounting, modified accrual basis with certain exceptions, prescribed by the Division of Local Government Services, Department of Community Affairs, State of New Jersey, that demonstrates compliance with the budget laws of New Jersey, which is a comprehensive basis of accounting, other then U.S. generally accepted accounting principles. The basis of accounting, with exception, is described in Note 1 to the Boroughs financial statements - regulatory basis. The Borough has elected not to use the 10 percent de minimus indirect cost rate as allowed under the uniform Guidance.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
Amounts reported in the accompanying schedules agree with amounts reported in the Boroughs regulatory basis financial statements. All of these amounts are reported in either the Current Fund or the Grant Fund. See Notes to the SEFA for the table.
Title: Other
Accounting Policies: The accompanying schedules of expenditures of financial assistance present the activity of all federal and state financial assistance programs of the Borough of Bound Brook, County of Somerset, New Jersey. All federal and state financial assistance received directly from federal or state agencies, as well as federal financial assistance passed through other governmental agencies is included on the Schedule of Expenditures of Federal Awards and State Financial Assistance. The accompanying schedules of expenditures of financial assistance are presented on the prescribed basis of accounting, modified accrual basis with certain exceptions, prescribed by the Division of Local Government Services, Department of Community Affairs, State of New Jersey, that demonstrates compliance with the budget laws of New Jersey, which is a comprehensive basis of accounting, other then U.S. generally accepted accounting principles. The basis of accounting, with exception, is described in Note 1 to the Boroughs financial statements - regulatory basis. The Borough has elected not to use the 10 percent de minimus indirect cost rate as allowed under the uniform Guidance.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
Matching contributions expended by the Borough in accordance with terms of the various grants are not reported in the accompanying schedules.