Title: 3. Relationship to Basic Financial Statements
Accounting Policies: 1. GeneralThe accompanying schedules of expenditures of federal awards and state financialassistance present the activity of all of all federal awards and state financial assistanceprograms of the District. The Board of Education is defined in Note 1 to the boards basicfinancial statements. All federal awards and state financial assistance received directlyfrom federal and state agencies, as well as federal awards and state financial assistancepassed through other government agencies, are included on the schedules ofexpenditures of federal awards and state financial assistance.2. Basis of AccountingThe accompanying schedules of expenditures of federal awards and state financialassistance are presented on the budgetary basis of accounting with the exception ofprograms recorded in the enterprise funds, which are presented using the accrual basisof accounting and those recorded in the special revenue fund, which are presentedusing the budgetary basis of accounting. These basis of accounting are described inNote 1 to the District's basic financial statements. The information in these schedules arepresented in accordance with the requirements of 2 CFR 200-Uniform AdministrativeRequirements, Cost Principles, and Audit Requirements for Federal Awards and NewJersey OMB Circular 15-08, Single Audit Policy for Recipients of Federal Grants, StateGrants and State Aid. Therefore, some amounts presented in this schedule may differfrom amounts presented, or used in the preparation of, the basic financial statements.
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 theDistricts basic financial statements. The basic financial statements present the generalfund and special revenue fund on a GAAP basis. Budgetary comparison statements orschedules (RSI) are presented for the general fund and special revenue fund todemonstrate finance-related legal compliance in which certain revenue is permitted bylaw or grant agreement to be recognized in the fiscal year, whereas for GAAP reporting,revenue is not recognized until the subsequent year or when expenditures have beenmade.The general fund is presented in the accompanying schedules on the modified accrualbasis of accounting with the exception of the revenue recognition of the last two state aidpayments in the current year, which is mandated pursuant to N.J.S.A. 18A:22-44.2. ForGAAP purposes, those payments are not recognized until the subsequent year due tothe state deferral and recording of the last two state aid payments in the subsequentyear. The special revenue fund is presented in the accompanying schedules on thegrant accounting budgetary basis, which recognizes encumbrances as expenditures andalso recognizes the related revenues, whereas the GAAP basis does not. The specialrevenue fund also recognizes the last state aid payments in the current budget year,consistent with N.J.S.A. 18A:22-44.2.As a result, the federal account receivable balance in the special revenue fund on thebudgetary basis differs from the GAAP basis as follows:AccountsReceivableBudgetaryBasisLess:EncumbrancesGAAPBasisFederal $903,931 $80,997 $822,934The net adjustment to reconcile from the budgetary basis to the GAAP basis is ($62,575)for the general fund. See note to required supplementary information for a reconciliationof the budgetary basis to the modified accrual basis of accounting for the general andspecial revenue funds (C-3). Federal and State award revenues are reported in theDistrict's basic financial statements on a GAAP basis as follows:Federal State TotalGeneral fund $ 19,201 $ 18,621,992 $ 18,641,193Special revenue fund 1,523,989 802,224 2,326,213Capital Projects fundDebt service fund34,511524,46134,511524,461Total financial award revenues $ 1,543,190 $ 19,983,188 $ 21,526,378
Title: 4. Relationship to Federal and State Financial Reports
Accounting Policies: 1. GeneralThe accompanying schedules of expenditures of federal awards and state financialassistance present the activity of all of all federal awards and state financial assistanceprograms of the District. The Board of Education is defined in Note 1 to the boards basicfinancial statements. All federal awards and state financial assistance received directlyfrom federal and state agencies, as well as federal awards and state financial assistancepassed through other government agencies, are included on the schedules ofexpenditures of federal awards and state financial assistance.2. Basis of AccountingThe accompanying schedules of expenditures of federal awards and state financialassistance are presented on the budgetary basis of accounting with the exception ofprograms recorded in the enterprise funds, which are presented using the accrual basisof accounting and those recorded in the special revenue fund, which are presentedusing the budgetary basis of accounting. These basis of accounting are described inNote 1 to the District's basic financial statements. The information in these schedules arepresented in accordance with the requirements of 2 CFR 200-Uniform AdministrativeRequirements, Cost Principles, and Audit Requirements for Federal Awards and NewJersey OMB Circular 15-08, Single Audit Policy for Recipients of Federal Grants, StateGrants and State Aid. Therefore, some amounts presented in this schedule may differfrom amounts presented, or used in the preparation of, the basic financial statements.
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 inthe related federal and state financial reports.
Title: 5. Other
Accounting Policies: 1. GeneralThe accompanying schedules of expenditures of federal awards and state financialassistance present the activity of all of all federal awards and state financial assistanceprograms of the District. The Board of Education is defined in Note 1 to the boards basicfinancial statements. All federal awards and state financial assistance received directlyfrom federal and state agencies, as well as federal awards and state financial assistancepassed through other government agencies, are included on the schedules ofexpenditures of federal awards and state financial assistance.2. Basis of AccountingThe accompanying schedules of expenditures of federal awards and state financialassistance are presented on the budgetary basis of accounting with the exception ofprograms recorded in the enterprise funds, which are presented using the accrual basisof accounting and those recorded in the special revenue fund, which are presentedusing the budgetary basis of accounting. These basis of accounting are described inNote 1 to the District's basic financial statements. The information in these schedules arepresented in accordance with the requirements of 2 CFR 200-Uniform AdministrativeRequirements, Cost Principles, and Audit Requirements for Federal Awards and NewJersey OMB Circular 15-08, Single Audit Policy for Recipients of Federal Grants, StateGrants and State Aid. Therefore, some amounts presented in this schedule may differfrom amounts presented, or used in the preparation of, the basic financial statements.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
TPAF Social Security Contributions represent the amount reimbursed by the State forthe employers share of Social Security for TPAF members for the year ended June 30,2022.The post-retirement pension, medical and disability insurance benefits received onbehalf of the District for the year ended June 30, 2022 amounted to $12,172,159. Sinceon-behalf post retirement pension, medical and disability insurance benefits are paid bythe State directly, these expenditures are not subject to a single audit in accordance withNew Jersey OMB Circular 15-08, however they are reported on the Schedule ofExpenditures of State Financial Assistance, as directed by the funding agency.
Title: 6. Indirect Costs
Accounting Policies: 1. GeneralThe accompanying schedules of expenditures of federal awards and state financialassistance present the activity of all of all federal awards and state financial assistanceprograms of the District. The Board of Education is defined in Note 1 to the boards basicfinancial statements. All federal awards and state financial assistance received directlyfrom federal and state agencies, as well as federal awards and state financial assistancepassed through other government agencies, are included on the schedules ofexpenditures of federal awards and state financial assistance.2. Basis of AccountingThe accompanying schedules of expenditures of federal awards and state financialassistance are presented on the budgetary basis of accounting with the exception ofprograms recorded in the enterprise funds, which are presented using the accrual basisof accounting and those recorded in the special revenue fund, which are presentedusing the budgetary basis of accounting. These basis of accounting are described inNote 1 to the District's basic financial statements. The information in these schedules arepresented in accordance with the requirements of 2 CFR 200-Uniform AdministrativeRequirements, Cost Principles, and Audit Requirements for Federal Awards and NewJersey OMB Circular 15-08, Single Audit Policy for Recipients of Federal Grants, StateGrants and State Aid. Therefore, some amounts presented in this schedule may differfrom amounts presented, or used in the preparation of, the basic financial statements.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The District did not use the 10% de minimis indirect cost rate.
Title: 7. Adjustments
Accounting Policies: 1. GeneralThe accompanying schedules of expenditures of federal awards and state financialassistance present the activity of all of all federal awards and state financial assistanceprograms of the District. The Board of Education is defined in Note 1 to the boards basicfinancial statements. All federal awards and state financial assistance received directlyfrom federal and state agencies, as well as federal awards and state financial assistancepassed through other government agencies, are included on the schedules ofexpenditures of federal awards and state financial assistance.2. Basis of AccountingThe accompanying schedules of expenditures of federal awards and state financialassistance are presented on the budgetary basis of accounting with the exception ofprograms recorded in the enterprise funds, which are presented using the accrual basisof accounting and those recorded in the special revenue fund, which are presentedusing the budgetary basis of accounting. These basis of accounting are described inNote 1 to the District's basic financial statements. The information in these schedules arepresented in accordance with the requirements of 2 CFR 200-Uniform AdministrativeRequirements, Cost Principles, and Audit Requirements for Federal Awards and NewJersey OMB Circular 15-08, Single Audit Policy for Recipients of Federal Grants, StateGrants and State Aid. Therefore, some amounts presented in this schedule may differfrom amounts presented, or used in the preparation of, the basic financial statements.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The adjustments presented on the schedule of federal awards represent cancelation ofprior year accounts receivable balances.