Audit 296789

Title: RELATIONSHIP TO BASIC REGULATORY BASIS FINANCIAL STATEMENTS Accounting Policies: GENERAL The accompanying schedules of expenditures of federal awards and state financial assistance presents the activity of all federal and state financial assistance programs of the Township of North Brunswick. The Township of North Brunswick is defined in Note 1 to the financial statements. To the extent identified, the federal awards and state financial assistance that passed through other governmental agencies is included on the schedules of federal awards and state financial assistance. BASIS OF ACCOUNTING The accompanying schedules of expenditures of federal awards and state financial assistance is presented using the regulatory basis of accounting prescribed or permitted for municipalities by the Division of Local Government Services, Department of Community Affairs, State of New Jersey, which differ in certain respects from accounting principles generally accepted in the United States of America (GAAP) applicable to local government units. This basis of accounting is described in Note 3 to the Township’s financial statements. In addition, the Township has elected not to use the 10 percent de minimis indirect cost rate allowed under Uniform Guidance and NJOMB Circular 15-08. De Minimis Rate Used: N Rate Explanation: The Township has elected not to use the ten percent de minimis indirect cost rate as allowed by the Uniform Guidance. Amounts reported in the accompanying schedules agree with amounts reported in the Township’s financial statements.

Title: RELATIONSHIP TO FEDERAL AND STATE FINANCIAL REPORTS Accounting Policies: GENERAL The accompanying schedules of expenditures of federal awards and state financial assistance presents the activity of all federal and state financial assistance programs of the Township of North Brunswick. The Township of North Brunswick is defined in Note 1 to the financial statements. To the extent identified, the federal awards and state financial assistance that passed through other governmental agencies is included on the schedules of federal awards and state financial assistance. BASIS OF ACCOUNTING The accompanying schedules of expenditures of federal awards and state financial assistance is presented using the regulatory basis of accounting prescribed or permitted for municipalities by the Division of Local Government Services, Department of Community Affairs, State of New Jersey, which differ in certain respects from accounting principles generally accepted in the United States of America (GAAP) applicable to local government units. This basis of accounting is described in Note 3 to the Township’s financial statements. In addition, the Township has elected not to use the 10 percent de minimis indirect cost rate allowed under Uniform Guidance and NJOMB Circular 15-08. De Minimis Rate Used: N Rate Explanation: The Township has elected not to use the ten percent de minimis indirect cost rate as allowed by the Uniform Guidance. Amounts reported in the accompanying schedule of federal awards and state financial assistance agree with the amounts reported in the related federal and state financial reports.