Notes to SEFA
Accounting Policies: Note 1: General The accompanying schedule of expenditures of federal awards presents the activity of all federal programs of the Borough of Somerville. All federal awards received directly from the federal agencies, as well as federal awards passed through other government agencies is included on the schedule of expenditures of federal awards. Note 2 Basis of Accounting: The accompanying schedule of expenditures of federal awards is presented using the modified accrual basis of accounting as prescribed by the Division of Local Government Services, Department of Community Affairs, State of New Jersey (OCBOA), which differ in certain respects from generally accepted accounting principles (GAAP) applicable to local government units and as detailed in the Notes to Financial Statements. The federal award expended amounts included in the expenditure schedule do not reflect amounts encumbered, which encumbered amounts are considered as expended as reported in the NJ OCBOA financial statements. In addition, the Borough has elected not to use the ten percent de minimus indirect cost rate under the Uniform Guidance and has not charged any indirect costs to its funded programs.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.