Notes to SEFA
Title: BASIS OF PRESENTATION
Accounting Policies: Expenditures reported on the accompanying schedules of expenditures of federal and state awards arereported on the accrual basis of accounting. This basis of accounting is described in Note 1 to the Collegesbasic financial statements. Such expenditures are recognized following the cost principles contained in theUniform Guidance, wherein certain types of expenditures are not allowed or are limited as to reimbursement.Negative amounts, if any, shown on the Schedules represents adjustments or credits made in the normalcourse of business to amounts reports as expenditures in prior years.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The accompanying schedules of expenditures of federal and state awards present the activity of federal and state award programs of the Warren County Community College (the College) under programs of the federal and state governments for the fiscal year ended June 30, 2022. 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 New Jersey's OMB Circular 15-08, Single Audit Policy for Recipients of Federal Grants, State Grants and State Aid. Because the schedules present only a selected portion of the operations of the College, they are not intended to and do not present the financial position, changes in net position or cash flows of the College.
Title: RELATIONSHIP TO BASIC FINANCIAL STATEMENTS
Accounting Policies: Expenditures reported on the accompanying schedules of expenditures of federal and state awards arereported on the accrual basis of accounting. This basis of accounting is described in Note 1 to the Collegesbasic financial statements. Such expenditures are recognized following the cost principles contained in theUniform Guidance, wherein certain types of expenditures are not allowed or are limited as to reimbursement.Negative amounts, if any, shown on the Schedules represents adjustments or credits made in the normalcourse of business to amounts reports as expenditures in prior years.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
There is an adjustment needed to reconcile the Schedule of Expenditures of Federal and State Awards to the basic financial statements. The adjustment for federal awards is $619,150 and the adjustment for state awards is ($2,786,832). The adjustment is necessary because the College must reflect the entire drawdown amounts on the Schedules of Expenditures of Federal and State Awards. In the basic financial statements, the College is only reflecting the revenue and expenses pertaining to the College and is not accounting for awards that pass through the College and are refunded to the students.
Title: RELATIONSHIP TO FEDERAL AND STATE FINANICAL REPORTS
Accounting Policies: Expenditures reported on the accompanying schedules of expenditures of federal and state awards arereported on the accrual basis of accounting. This basis of accounting is described in Note 1 to the Collegesbasic financial statements. Such expenditures are recognized following the cost principles contained in theUniform Guidance, wherein certain types of expenditures are not allowed or are limited as to reimbursement.Negative amounts, if any, shown on the Schedules represents adjustments or credits made in the normalcourse of business to amounts reports as expenditures in prior years.
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 the amounts reported in the related federal and state financial reports.