Title: Note 1. General
Accounting Policies: The accompanying schedule of expenditures of financial assistance 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 then U.S. generally accepted accounting principles.
The basis of accounting, with exception, is described in Note 1 to the Borough's financial
statements - regulatory basis.
De Minimis Rate Used: N
Rate Explanation: No costs were allocated.
The accompanying schedules of expenditures of financial assistance present the activity of all
federal awards programs of the Borough of Metuchen, County of Middlesex, New Jersey. All
federal awards received directly from agencies is included on the Schedule of Expenditures of
Federal Awards
Title: Note 2. Basis of Accounting
Accounting Policies: The accompanying schedule of expenditures of financial assistance 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 then U.S. generally accepted accounting principles.
The basis of accounting, with exception, is described in Note 1 to the Borough's financial
statements - regulatory basis.
De Minimis Rate Used: N
Rate Explanation: No costs were allocated.
The accompanying schedule of expenditures of financial assistance 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 then U.S. generally accepted accounting principles.
The basis of accounting, with exception, is described in Note 1 to the Borough's financial
statements - regulatory basis.
Title: Note 3. Relationship to Federal Financial Report
Accounting Policies: The accompanying schedule of expenditures of financial assistance 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 then U.S. generally accepted accounting principles.
The basis of accounting, with exception, is described in Note 1 to the Borough's financial
statements - regulatory basis.
De Minimis Rate Used: N
Rate Explanation: No costs were allocated.
Amounts reported in the accompanying schedules of expenditures agree with the amounts
reported in the related federal financial reports. In addition, the Borough has not elected to use
the 10% de minimus cost rate as covered in 2 CFR 200.414 (F&AS) costs.
Title: Note 4. Relationsip to Financial Statements-Regulatory Basis
Accounting Policies: The accompanying schedule of expenditures of financial assistance 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 then U.S. generally accepted accounting principles.
The basis of accounting, with exception, is described in Note 1 to the Borough's financial
statements - regulatory basis.
De Minimis Rate Used: N
Rate Explanation: No costs were allocated.
Amounts reported in the accompanying schedules agree with amounts reported in the
Borough's regulatory basis financial statements. These amounts are reported in either the
Current Fund, Grant Fund or General Capital Fund.
Title: Note 5. Other
Accounting Policies: The accompanying schedule of expenditures of financial assistance 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 then U.S. generally accepted accounting principles.
The basis of accounting, with exception, is described in Note 1 to the Borough's financial
statements - regulatory basis.
De Minimis Rate Used: N
Rate Explanation: No costs were allocated.
Matching contributions expended by the Borough in accordance with terms of the various grants
are not reported in the accompanying schedules.