Notes to SEFA
Accounting Policies: The accompanying schedules of expenditures of federal awards and state financial assistance are 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 which differ in certain respects from generally accepted accounting principles (GAAP) applicable to local government units. This regulatory basis of accounting is described in Note 2(B) to the Citys financial statements. In addition, the City has elected not to use the 10 percent de minimis indirect cost rate as allowed by 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.