Notes to SEFA
Title: BASIS OF PRESENTATION
Accounting Policies: Expenditures reported on the accompanying schedules of expenditures of federal and state awards are reported on thebudgetary basis of accounting with the exception of programs recorded in the food service fund, which are presented on theaccrual basis of accounting. These bases of accounting are described in Note 1 to the Districts basic financial statements. Suchexpenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types ofexpenditures are not allowable or are limited as to reimbursement. Negative amounts, if any, shown on the Schedulesrepresent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The accompanying schedules of expenditures of federal and state awards (the Schedules) include the federal and state grant activity of the Borough of Bound Brook School District under programs of the federal and state governments for the fiscal yearended June 30, 2022. 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 FederalAwards (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 notintended to and do not present the financial position, changes in net position or cash flows of the District.
Title: RELATIONSHIP TO FEDERAL AND STATE FINANCIAL REPORTS
Accounting Policies: Expenditures reported on the accompanying schedules of expenditures of federal and state awards are reported on thebudgetary basis of accounting with the exception of programs recorded in the food service fund, which are presented on theaccrual basis of accounting. These bases of accounting are described in Note 1 to the Districts basic financial statements. Suchexpenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types ofexpenditures are not allowable or are limited as to reimbursement. Negative amounts, if any, shown on the Schedulesrepresent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years.
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 in the related federal and state financial reports.
Title: OTHER
Accounting Policies: Expenditures reported on the accompanying schedules of expenditures of federal and state awards are reported on thebudgetary basis of accounting with the exception of programs recorded in the food service fund, which are presented on theaccrual basis of accounting. These bases of accounting are described in Note 1 to the Districts basic financial statements. Suchexpenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types ofexpenditures are not allowable or are limited as to reimbursement. Negative amounts, if any, shown on the Schedulesrepresent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
Revenue and expenditures reported under the Food Distribution Program represent current year value received and current year distributions respectively. TPAF Social Security contributions represent the amount reimbursed by the State for the employers share of social security contributions for TPAF members for the fiscal year ended June 30, 2022.