Notes to SEFA
Title: D. Relationship to Basic Financial Statements
Accounting Policies: A. Basis of Presentation - The accompanying schedules of expenditures of federal awards and state financial assistance includes the federal and state grant activity of the Authority and is presented on the accrual basis of accounting. The information in these schedules is presented in accordance with the requirements of the Single Audit Act and Subpart F 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 State of New Jersey Circular Letter 15-08-OMB (“Circular Letter 15-08-OMB”). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements.
B. Significant Accounting Policy - The Authority recognizes grant revenue when earned on an accrual basis; that is, activities prerequisite to obtaining benefit have been completed, such as complying with the terms and conditions of the grant agreement.
De Minimis Rate Used: N
Rate Explanation: C. Indirect Cost Rate - The Authority does not have an indirect cost allocation plan nor does it use the de minimis indirect cost rate of 10%.
Amounts reported in the accompanying schedules of expenditures of federal awards and state financial assistance agree with amounts reported in the Authority’s basic financial statements. See Note B for the summary of significant accounting policies.