Audit 316903

Accounting Policies: A. GENERAL - The accompanying schedule of expenditures presents the activity of all federal programs of the Township of Mount Laurel, County of Burlington, State of New Jersey (the “Township”). The Township is defined in Note A to the Township’s financial statements – regulatory basis. The Township is the prime sponsor and recipient of various federal grant funds. The Township has delegated the administration of grant programs and the reporting function to various departments within the Township. Substantially all grant and program cash funds are commingled with the Township’s other funds, although each grant is accounted for separately within the Township’s financial records. B. BASIS OF ACCOUNTING - B. BASIS OF ACCOUNTING The accompanying schedule of expenditures of federal awards is presented using the modified accrual basis of accounting in accordance with the “Requirements of Audit” as promulgated by the Division of Local Government Services, Department of Community Affairs, State of New Jersey. Such principles and practices are designed primarily for determining compliance with legal provisions and budgetary restrictions and as a means of reporting on the stewardship of publicofficials with respect to public funds. Under this method of accounting, the Township accounts for its financial transactions through separate funds, which differ from the funds required by accounting principles generally accepted in the United States of America (“GAAP”). Modifications to the accrual basis: a. Expenditures are recorded on the schedule of expenditures of federal awards when encumbered. b. Prepaid expenditures are not recorded. c. Obligations for employees’ vested vacation and sick leave are recorded when paid. d. Grant revenues are recorded when anticipated in the budget. e. Property and equipment purchased are recorded as expenditures at the time of purchase and are not capitalized. De Minimis Rate Used: N Rate Explanation: The Township does not have an indirect cost allocation plan, nor does it use the de minimis indirect cost rate of 10%.