Title: BASIS OF PRESENTATION
Accounting Policies: Expenditures reported on the accompanying schedules of expenditures of federal and state awards arereported on the cash basis of accounting. Such expenditures are recognized following the cost principlescontained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limitedas to reimbursement. Negative amounts, if any, shown on the Schedules represent adjustments or creditsmade in the normal course of business to amounts reported as expenditures in prior years. Pass-throughidentifying numbers are presented where available. The Borough has elected not to use the 10 percent deminimis 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.
The accompanying schedules of expenditures of federal and state awards (the Schedules) includes thefederal and state grant activity of the Borough of Hopatcong under programs of the federal and stategovernments for the year ended December 31, 2022. The information in these schedules is presented inaccordance with the requirements of the Title 2 U.S. Code of Federal Regulations Part 200, UniformAdministrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (UniformGuidance) and New Jersey's OMB Circular 15-08, Single Audit Policy for Recipients of Federal Grants,State Grants and State Aid. Because the schedules present only a selected portion of the operations of theBorough, they are not intended to and do not present the financial position, changes in fund balance or cashflows of the Borough.
Title: FARMERS HOME ADMINISTRATION LOANS PAYABLE
Accounting Policies: Expenditures reported on the accompanying schedules of expenditures of federal and state awards arereported on the cash basis of accounting. Such expenditures are recognized following the cost principlescontained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limitedas to reimbursement. Negative amounts, if any, shown on the Schedules represent adjustments or creditsmade in the normal course of business to amounts reported as expenditures in prior years. Pass-throughidentifying numbers are presented where available. The Borough has elected not to use the 10 percent deminimis 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.
At December 31, 2022, the Borough has $74,783.47 of Farmers Home Administration Loans Payableoutstanding which is recorded in the Water Utility Capital Fund. The projects which relate to these loansare complete, and the Borough is repaying the loan balances. There were no loan receipts or expenditures inthe current year.
Title: N.J. ENVIRONMENTAL INFRASTRUCTURE (NJEIT) LOANS PAYABLE
Accounting Policies: Expenditures reported on the accompanying schedules of expenditures of federal and state awards arereported on the cash basis of accounting. Such expenditures are recognized following the cost principlescontained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limitedas to reimbursement. Negative amounts, if any, shown on the Schedules represent adjustments or creditsmade in the normal course of business to amounts reported as expenditures in prior years. Pass-throughidentifying numbers are presented where available. The Borough has elected not to use the 10 percent deminimis 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.
At December 31, 2022, the Borough has $3,825,000.00 and $3,610,271.02 of N.J. EnvironmentalInfrastructure Trust and Fund Loans Payable outstanding which are recorded in the Sewer Utility CapitalFund. The projects which relate to these loans are complete, and the Borough is repaying the loan balances.There were no loan receipts or expenditures in the current year.At December 31, 2022, the Borough has $115,000.00 and $111,305.55 of N.J. Environmental InfrastructureTrust and Fund Loans Payable outstanding which are recorded in the Sewer Utility Assessment Trust Fund.The projects which relate to these loans are complete, and the Borough is repaying the loan balances. Therewere no loan receipts or expenditures in the current year.At December 31, 2022, the Borough has $95,842.00 of N.J. Environmental Infrastructure TrustConstruction Financing Loans Payable outstanding which are recorded in the Water Utility Capital Fund.The projects which relate to these loans are in progress. There were loan receipts and expenditures in thecurrent year.
Title: RELATIONSHIP TO FEDERAL AND STATE FINANCIAL REPORTS
Accounting Policies: Expenditures reported on the accompanying schedules of expenditures of federal and state awards arereported on the cash basis of accounting. Such expenditures are recognized following the cost principlescontained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limitedas to reimbursement. Negative amounts, if any, shown on the Schedules represent adjustments or creditsmade in the normal course of business to amounts reported as expenditures in prior years. Pass-throughidentifying numbers are presented where available. The Borough has elected not to use the 10 percent deminimis 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 the amounts reported in the related federal and state financial reports.