Audit 314487

Title: NOTE 1: GENERAL Accounting Policies: The accompanying schedule of expenditures of federal awards is presented using the modified accrual basis of accounting as prescribed by the Division of Local Government Services, Department of Community Affairs, State of New Jersey which differ in certain respects from generally accepted accounting principles (GAAP) applicable to local government units. This regulatory basis of accounting is described in Note 2(C) to Borough of North Plainfield’s financial statements. De Minimis Rate Used: N Rate Explanation: The Borough of North Plainfield has elected not to use the 10 percent de minimis indirect cost rate as allowed by the Uniform Guidance and has not charged any indirect costs to its funded programs. The accompanying schedule of expenditures of federal awards present the activity of all federal award programs of the Borough of North Plainfield, County of Somerset, New Jersey. The Borough of North Plainfield is defined in Note 2(A) to the financial statements. All federal awards received directly from federal agencies, as well as federal awards passed through other government agencies are included on the schedule of expenditures of federal awards.

Title: NOTE 2: BASIS OF ACCOUNTING Accounting Policies: The accompanying schedule of expenditures of federal awards is presented using the modified accrual basis of accounting as prescribed by the Division of Local Government Services, Department of Community Affairs, State of New Jersey which differ in certain respects from generally accepted accounting principles (GAAP) applicable to local government units. This regulatory basis of accounting is described in Note 2(C) to Borough of North Plainfield’s financial statements. De Minimis Rate Used: N Rate Explanation: The Borough of North Plainfield has elected not to use the 10 percent de minimis indirect cost rate as allowed by the Uniform Guidance and has not charged any indirect costs to its funded programs. The accompanying schedule of expenditures of federal awards is presented using the modified accrual basis of accounting as prescribed by the Division of Local Government Services, Department of Community Affairs, State of New Jersey which differ in certain respects from generally accepted accounting principles (GAAP) applicable to local government units. This regulatory basis of accounting is described in Note 2(C) to Borough of North Plainfield’s financial statements.

Title: NOTE 3: RELATIONSHIP TO GENERAL FINANCIAL STATEMENTS Accounting Policies: The accompanying schedule of expenditures of federal awards is presented using the modified accrual basis of accounting as prescribed by the Division of Local Government Services, Department of Community Affairs, State of New Jersey which differ in certain respects from generally accepted accounting principles (GAAP) applicable to local government units. This regulatory basis of accounting is described in Note 2(C) to Borough of North Plainfield’s financial statements. De Minimis Rate Used: N Rate Explanation: The Borough of North Plainfield has elected not to use the 10 percent de minimis indirect cost rate as allowed by the Uniform Guidance and has not charged any indirect costs to its funded programs. Unless specifically noted, the amounts reported in the accompanying schedule agree with amounts reported in Borough of North Plainfield’s financial statements.

Title: NOTE 4: RELATIONSHIP TO FEDERAL FINANCIAL REPORTS Accounting Policies: The accompanying schedule of expenditures of federal awards is presented using the modified accrual basis of accounting as prescribed by the Division of Local Government Services, Department of Community Affairs, State of New Jersey which differ in certain respects from generally accepted accounting principles (GAAP) applicable to local government units. This regulatory basis of accounting is described in Note 2(C) to Borough of North Plainfield’s financial statements. De Minimis Rate Used: N Rate Explanation: The Borough of North Plainfield has elected not to use the 10 percent de minimis indirect cost rate as allowed by the Uniform Guidance and has not charged any indirect costs to its funded programs. Unless specifically required, the amounts reported in the accompanying schedule agree with the amounts reported in the related federal financial reports, where required.

Title: NOTE 5: INDIRECT COST RATE Accounting Policies: The accompanying schedule of expenditures of federal awards is presented using the modified accrual basis of accounting as prescribed by the Division of Local Government Services, Department of Community Affairs, State of New Jersey which differ in certain respects from generally accepted accounting principles (GAAP) applicable to local government units. This regulatory basis of accounting is described in Note 2(C) to Borough of North Plainfield’s financial statements. De Minimis Rate Used: N Rate Explanation: The Borough of North Plainfield has elected not to use the 10 percent de minimis indirect cost rate as allowed by the Uniform Guidance and has not charged any indirect costs to its funded programs. The Borough of North Plainfield has elected not to use the 10 percent de minimis indirect cost rate as allowed by the Uniform Guidance and has not charged any indirect costs to its funded programs.