Audit 315624

Title: RELATIONSHIP TO FINANCIAL STATEMENTS Accounting Policies: GENERAL The accompanying schedule presents the activity of all federal awards and state financial assistance programs of the Township of Wayne. The Township is defined in Note 1(A) to the Township's financial statements. All federal financial assistance received directly from federal agencies, as well as federal awards passed through other government agencies is included on the schedule of expenditures of federal awards. All state financial assistance received from the State of New Jersey is included on the Schedule of Expenditures of State Financial Assistance. The accompanying Schedule are the responsibility of the Township. The Township has prepared the Schedules. BASIS OF ACCOUNTING The accompanying schedule is prepared and presented using the regulatory basis of accounting as prescribed 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 not elected to use the 10 percent de minimis indirect cost rate 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 AND STATE FINANCIAL REPORTS Accounting Policies: GENERAL The accompanying schedule presents the activity of all federal awards and state financial assistance programs of the Township of Wayne. The Township is defined in Note 1(A) to the Township's financial statements. All federal financial assistance received directly from federal agencies, as well as federal awards passed through other government agencies is included on the schedule of expenditures of federal awards. All state financial assistance received from the State of New Jersey is included on the Schedule of Expenditures of State Financial Assistance. The accompanying Schedule are the responsibility of the Township. The Township has prepared the Schedules. BASIS OF ACCOUNTING The accompanying schedule is prepared and presented using the regulatory basis of accounting as prescribed 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 not elected to use the 10 percent de minimis indirect cost rate allowed by the Uniform Guidance. Amounts reported in the accompanying schedule may not necessarily agree with the amounts reported in the related federal and state financial reports due to timing differences between the Township’s fiscal year and grant program year.