Notes to SEFA
Accounting Policies: Expenditures reported on the schedule of expenditures of federal awards and state financial assistance arereported on the modified accrual basis of accounting. This basis of accounting is described in Note 1 to thefinancial statements. Such expenditures are recognized following the cost principles contained in Title 2U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administration Requirements, Cost Principles,and Audit requirements for Federal Awards, and State of New Jersey Circular 15-08-OMB, Single AuditPolicy for Recipients of Federal Grants, State Grants and State Aid, wherein certain types of expendituresare not allowed or are limited as to reimbursement. The expenditures reflected in the schedule ofexpenditures of federal awards are presented at the federal participation level; thus, any matching portionis not included.The accompanying schedule of collection and expenditures of passenger facility charges is presented usingthe cash basis of accounting. PFC receipts are recorded as PFC advanced in the Authoritys financialstatements until authorization is received for expenditure of these funds for construction under an FAAapprovedapplication.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.