Notes to SEFA
Title: l. BASIS OF PRESENTATION
Accounting Policies: The schedules of expenditures of federal awards are presented using the budgetary basis of accounting.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The accompanying schedule of expenditures federal awards and state financial assistance (“schedules”) includes federal
and state award activity of the Township of Hopewell (“Township”) under programs of the federal government and state
government for the year ended December 31, 2022. The Township is defined in note 1 to the financial statements. The
information in these schedules is presented in accordance with the requirements of Title 2 U.S. Code of Federal
Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal
Awards (Uniform Guidance) and State of New Jersey Circular 15-08-OMB, Single Audit Policy for Recipients of Federal
Grants, State Grants and State Aid. All federal and state awards received directly from federal and state agencies, as well
as federal awards and state financial assistance passed through other government agencies, are included on the schedules.
Because these schedules present only a selected portion of the operations of the Township, it is not intended to and does
not present the financial position and changes in operations of the Township.
Title: 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Accounting Policies: The schedules of expenditures of federal awards are presented using the budgetary basis of accounting.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
Expenditures reported on the schedules are reported in accordance with the Requirements of Audit(“Requirements”) as
promulgated by the Division of Local Government Services, Department of Community Affairs, State of New Jersey,
and present expenditures on the modified accrual basis of accounting with minor exceptions as mandated by the
Requirements. This basis of accounting is described in Note 1 to the financial statements. Such expenditures are
recognized following the cost principles in Title 2 U.S. Code of Federal Regulations (CFR) Part 200. Uniform
Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, and State of New Jersey
Circular 15-08-OMB, Single Audit Policy for Recipients of Federal Grants, State Grants, and State Aid, wherein certain
types of expenditures are not allowed or are limited as to reimbursement.
Title: 3. INDIRECT COST RATE
Accounting Policies: The schedules of expenditures of federal awards are presented using the budgetary basis of accounting.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The Township has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
Title: 4. RELATIONSHIP TO FINANCIAL STATEMENTS
Accounting Policies: The schedules of expenditures of federal awards are presented using the budgetary basis of accounting.
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 amounts reported in the Township's financial statements.
Expenditures from awards are reported in the Township's financial statements as follows:
Title: 5. MAJOR PROGRAMS
Accounting Policies: The schedules of expenditures of federal awards are presented using the budgetary basis of accounting.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
Major programs are identified in the "Summary of Auditor's Results" section of the Schedule of Findings and Questioned
Costs.