Notes to SEFA
Title: Relationship to financial statements - regulatory basis
Accounting Policies: The accompanying schedules of expenditures of federal awards present the activity of all federal financial assistance programs of the Township of Middletown, County of Monmouth, New Jersey. All federal financial assistance received directly from federal or state agencies, as well as federal and assistance passed through other government agencies is included on the Schedule of Expenditures of Federal Awards. The accompanying schedule of expenditures of federal awards and schedule of is 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 than generally accepted accounting principles. The basis of accounting, with exceptions, is described in Note 1 to the Townships financial statements - regulatory basis.
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 Townships regulatory basis financial statements. These amounts are reported in the Current Fund, Grant Fund and General Capital Fund. During 2022 the Township received Federal Funds related to the global pandemic (COVID 19). These funds were not required to be budgeted. See table in Financial Statements
Title: Other
Accounting Policies: The accompanying schedules of expenditures of federal awards present the activity of all federal financial assistance programs of the Township of Middletown, County of Monmouth, New Jersey. All federal financial assistance received directly from federal or state agencies, as well as federal and assistance passed through other government agencies is included on the Schedule of Expenditures of Federal Awards. The accompanying schedule of expenditures of federal awards and schedule of is 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 than generally accepted accounting principles. The basis of accounting, with exceptions, is described in Note 1 to the Townships financial statements - regulatory basis.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
Matching contributions expended by the Township in accordance with terms of the various grants are not reported in the accompanying schedules.