Title: Note B. Basis of Accounting
Accounting Policies: A. GENERAL - The accompanying schedule of expenditures presents the activity of all federal programs of the Township of Mount Laurel, County of Burlington, State of New Jersey (the Township). The Township is defined in Note A to the Townships financial statements regulatory basis. The Township is the prime sponsor and recipient of various federal grant funds. The Township has delegated the administration of grant programs and the reporting function to various departments within the Township. Substantially all grant and program cash funds are commingled with the Townships other funds, although each grant is accounted for separately within the Townships financial records.
De Minimis Rate Used: N
Rate Explanation: The Township does not have an indirect cost allocation plan, nor does it use the de minimis indirect cost rate of 10%.
The accompanying schedule of expenditures of federal awards is presented using the modifiedaccrual basis of accounting in accordance with the Requirements of Audit as promulgated by theDivision of Local Government Services, Department of Community Affairs, State of New Jersey.Such principles and practices are designed primarily for determining compliance with legalprovisions and budgetary restrictions and as a means of reporting on the stewardship of publicofficials with respect to public funds. Under this method of accounting, the Township accounts forits financial transactions through separate funds, which differ from the funds required by accountingprinciples generally accepted in the United States of America (GAAP).Modifications to the accrual basis: a. Expenditures are recorded on the schedule of expenditures of federal awards whenencumbered. b. Prepaid expenditures are not recorded. c. Obligations for employees vested vacation and sick leave are recorded when paid. d. Grant revenues are recorded when anticipated in the budget. e. Property and equipment purchased are recorded as expenditures at the time of purchaseand are not capitalized.
Title: Note C. Indirect Cost Rate
Accounting Policies: A. GENERAL - The accompanying schedule of expenditures presents the activity of all federal programs of the Township of Mount Laurel, County of Burlington, State of New Jersey (the Township). The Township is defined in Note A to the Townships financial statements regulatory basis. The Township is the prime sponsor and recipient of various federal grant funds. The Township has delegated the administration of grant programs and the reporting function to various departments within the Township. Substantially all grant and program cash funds are commingled with the Townships other funds, although each grant is accounted for separately within the Townships financial records.
De Minimis Rate Used: N
Rate Explanation: The Township does not have an indirect cost allocation plan, nor does it use the de minimis indirect cost rate of 10%.
The Township does not have an indirect cost allocation plan, nor does it use the de minimis indirect cost rate of 10%.
Title: Note D. Commitments and Contingencies
Accounting Policies: A. GENERAL - The accompanying schedule of expenditures presents the activity of all federal programs of the Township of Mount Laurel, County of Burlington, State of New Jersey (the Township). The Township is defined in Note A to the Townships financial statements regulatory basis. The Township is the prime sponsor and recipient of various federal grant funds. The Township has delegated the administration of grant programs and the reporting function to various departments within the Township. Substantially all grant and program cash funds are commingled with the Townships other funds, although each grant is accounted for separately within the Townships financial records.
De Minimis Rate Used: N
Rate Explanation: The Township does not have an indirect cost allocation plan, nor does it use the de minimis indirect cost rate of 10%.
Each of the grantor agencies reserves the right to conduct additional audits of the Townships grantprograms for economy, efficiency and program results. However, the Township management doesnot believe such audits would result in material amounts of disallowed costs.The Township has not entered into various contracts with sub recipients and other contractors toperform services or provide goods in an effort to administer such grants. Thus, the Township hasno commitments to meet various conditions of such contracts.
Title: Note E. Relationship to General Purpose Financial Statements
Accounting Policies: A. GENERAL - The accompanying schedule of expenditures presents the activity of all federal programs of the Township of Mount Laurel, County of Burlington, State of New Jersey (the Township). The Township is defined in Note A to the Townships financial statements regulatory basis. The Township is the prime sponsor and recipient of various federal grant funds. The Township has delegated the administration of grant programs and the reporting function to various departments within the Township. Substantially all grant and program cash funds are commingled with the Townships other funds, although each grant is accounted for separately within the Townships financial records.
De Minimis Rate Used: N
Rate Explanation: The Township does not have an indirect cost allocation plan, nor does it use the de minimis indirect cost rate of 10%.
Amounts reported in the accompanying schedule agree with amounts reported in the Townships basic financial statements on a regulatory basis. Financial assistance revenues and expenditures are reported in the Townships basic financial statements on the basis of accounting prescribed by the Division of Local Government Services, Department of Community Affairs, State of New Jersey. See Note E in the uploaded single audit report for reconciliation of schedule of expenditures of federal awards to Township's main financial statements.
Title: Note F. Relationship to Federal and State Financial Reports
Accounting Policies: A. GENERAL - The accompanying schedule of expenditures presents the activity of all federal programs of the Township of Mount Laurel, County of Burlington, State of New Jersey (the Township). The Township is defined in Note A to the Townships financial statements regulatory basis. The Township is the prime sponsor and recipient of various federal grant funds. The Township has delegated the administration of grant programs and the reporting function to various departments within the Township. Substantially all grant and program cash funds are commingled with the Townships other funds, although each grant is accounted for separately within the Townships financial records.
De Minimis Rate Used: N
Rate Explanation: The Township does not have an indirect cost allocation plan, nor does it use the de minimis indirect cost rate of 10%.
Amounts reported in the accompanying schedule agree with the amounts reported in the related federal financial report.