Title: Note 2 - Basis of accounting
Accounting Policies: The accompanying schedule of expenditures of federal awards and state financial assistance present the activity of all federal and state award programs of the organization. All federal and state awards, with current year activity, received directly from federal, state, and local agencies, as well as federal and state awards passed through other government agencies, are included in the schedule.
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate.
The accompanying schedules of expenditures of federal awards and state financial assistance are presented using the accrual basis of accounting. This basis of accounting is described in Note 2 to the organizations financial statements. 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 State of New Jersey Circular 15-08-OMB, Single Audit Policy for Recipients of Federal Grants, State Grants and State Aid. The Organization has negotiated an indirect cost rate with the Department of Health and Human Services of 13.7% for their Head Start Programs and 13.7% for all other programs.
Title: Note 3 - Relationship to general purpose financial statements
Accounting Policies: The accompanying schedule of expenditures of federal awards and state financial assistance present the activity of all federal and state award programs of the organization. All federal and state awards, with current year activity, received directly from federal, state, and local agencies, as well as federal and state awards passed through other government agencies, are included in the schedule.
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate.
Amounts reported in the accompanying schedule agree, in all material respects, with the amounts reported in related federal and state financial reports.
Title: Note 4 - Relationship to federal and state financial reports
Accounting Policies: The accompanying schedule of expenditures of federal awards and state financial assistance present the activity of all federal and state award programs of the organization. All federal and state awards, with current year activity, received directly from federal, state, and local agencies, as well as federal and state awards passed through other government agencies, are included in the schedule.
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate.
Amounts reported in the accompanying schedules agree, in all material respects, with the amounts reported in related federal and state financial reports. However, the basis of accounting prescribed by the pass-through agency for the preparation of expenditure reports is different than the accrual basis of accounting. The basic difference between the two bases of accounting is that the equipment purchased with program funds are included as expenditures in the expenditure reports, while GAAP requires these items to be capitalized and depreciated over their useful lives.
Title: Note 5 - Major programs
Accounting Policies: The accompanying schedule of expenditures of federal awards and state financial assistance present the activity of all federal and state award programs of the organization. All federal and state awards, with current year activity, received directly from federal, state, and local agencies, as well as federal and state awards passed through other government agencies, are included in the schedule.
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate.
Major programs are identified in the Summary of Auditors Results section of the Schedule of Findings and Questioned Costs.