Title: Basis of Presentation
Accounting Policies: Expenditures reported in the accompanying schedules of expenditures of federal and state awards are reported on the budgetary basis of accounting.
De Minimis Rate Used: N
Rate Explanation: N/A
The accompanying schedules of expenditures of federal and state awards includes the federal and state grant
activity of Township of Montclair School District under programs of the federal and state governments for the
fiscal year ended June 30, 2023. The information in these schedules is presented in accordance with the
requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (“Uniform Guidance”) and New Jersey’s OMB Circular
15-08, Single Audit Policy for Recipients of Federal Grants, State Grants and State Aid. Because the schedules
present only a selected portion of the operations of the District, they are not intended to and do not present the
financial position, changes in net position or cash flows of the District
Title: Summary of Significant Accounting Policies
Accounting Policies: Expenditures reported in the accompanying schedules of expenditures of federal and state awards are reported on the budgetary basis of accounting.
De Minimis Rate Used: N
Rate Explanation: N/A
Expenditures reported on the accompanying schedules of expenditures of federal and state awards are reported on
the budgetary basis of accounting with the exception of programs recorded in the food service fund, which are
presented on the accrual basis of accounting. These bases of accounting are described in Note 1 to the District’s
basic financial statements. Such expenditures are recognized following the cost principles contained in the
Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
Negative amounts, if any, shown on the Schedules represent adjustments or credits made in the normal course of
business to amounts reported as expenditures in prior years
Title: Indirect Cost Rate
Accounting Policies: Expenditures reported in the accompanying schedules of expenditures of federal and state awards are reported on the budgetary basis of accounting.
De Minimis Rate Used: N
Rate Explanation: N/A
The District has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform
Guidance
Title: Relationship to Basic Financial Staatements
Accounting Policies: Expenditures reported in the accompanying schedules of expenditures of federal and state awards are reported on the budgetary basis of accounting.
De Minimis Rate Used: N
Rate Explanation: N/A
The basic financial statements present the general fund, special revenue fund and capital projects fund on a GAAP basis. Budgetary comparison statements or schedules (RSI) are presented for the general fund and special revenue fund to demonstrate finance-related legal compliance in which certain revenue is permitted by law or grant agreement to be recognized in the audit year, whereas for GAAP reporting, revenue is not recognized until the subsequent year or when expenditures have been made.
The general and special revenue funds are presented in the accompanying schedules on the modified accrual basis with the exception of the revenue recognition of the last two state aid payments in the current budget year, which is mandated pursuant to P.L. 2003, C.97 (A3521). For GAAP purposes, those payments are not recognized until the subsequent budget year due to the state deferral and recording of the last two state aid payments in the subsequent year. The special revenue fund is presented in the accompanying schedules on the grant accounting budgetary basis which recognizes encumbrances as expenditures and also recognizes the related revenue, whereas the GAAP basis does not. The capital projects fund is presented in the accompanying schedules on the budgetary basis with the exception of the revenue recognition of the SDA grants which are realized as revenue upon their award for budgetary basis, whereas the GAAP basis recognizes the revenue to the extent of actual expenditures and when funds are submitted for reimbursement. The net adjustment to reconcile from the budgetary basis to the GAAP basis is $(53,900) for the General Fund and ($272,229) for the Special Revenue Fund. The Food Service Program receipt of the Paycheck Protection Program Reimbursement of $63,598 is not recorded on the Schedules of Expenditures of Federal Awards
Title: Other
Accounting Policies: Expenditures reported in the accompanying schedules of expenditures of federal and state awards are reported on the budgetary basis of accounting.
De Minimis Rate Used: N
Rate Explanation: N/A
TPAF Social Security contributions represent the amount reimbursed by the State for the employers’ share of
social security contributions for TPAF members for the year ended June 30, 2023. Revenue and expenditures
reported under the Food Distribution Program represent current year value received and current year distributions
respectively
Title: NJ SDA Grants
Accounting Policies: Expenditures reported in the accompanying schedules of expenditures of federal and state awards are reported on the budgetary basis of accounting.
De Minimis Rate Used: N
Rate Explanation: N/A
The District has active grants awarded in the amount of $2,299,174 from the Schools Development Authority
(SDA) under the Educational Facilities Construction and Financing Act as of June 30, 2023 after having received
reimbursement of $194,370 in 2022-2023. As of June 30, 2023 none of these funds have been expended,
submitted for reimbursement or been drawn down and received. The District realizes grant revenue in the Capital
Projects Fund on the GAAP basis as it is expended and submitted for reimbursement