Audit 310267

Title: Relationship to Basic Regulatory Basis Financial Statements Accounting Policies: General The accompanying schedule of expenditures of federal awards presents the activity of all federal awards programs of the Township of Mount Olive (“Township”). The Township is defined in Note 1 to the Township’s financial statements. To the extent identified, the federal awards that passed through other governmental agencies is included on the schedule of expenditures of federal awards. Basis of Accounting The accompanying schedule 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 1 to the Township’s financial statements. 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 agrees with amounts reported in the Township’s financial statements.

Title: Relationship to Federal Financial Reports Accounting Policies: General The accompanying schedule of expenditures of federal awards presents the activity of all federal awards programs of the Township of Mount Olive (“Township”). The Township is defined in Note 1 to the Township’s financial statements. To the extent identified, the federal awards that passed through other governmental agencies is included on the schedule of expenditures of federal awards. Basis of Accounting The accompanying schedule 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 1 to the Township’s financial statements. 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 expenditures of federal awards agrees with the amounts reported in the related federal financial reports, where required.