Notes to SEFA
Title: BASIS OF PRESENTATION
Accounting Policies: Expenditures included in the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Pass-through entity identifying numbers are presented where applicable. Certain costs included in the accompanying Schedule of Expenditures of Federal Awards have been capitalized for financial statement purposes and are, therefore, not included in the accompanying Statement of Activities.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The accompanying schedule of expenditures of federal awards includes the federal grant activity of Somerset County (the County) and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements.
Title: DEFERRED AWARDS
Accounting Policies: Expenditures included in the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Pass-through entity identifying numbers are presented where applicable. Certain costs included in the accompanying Schedule of Expenditures of Federal Awards have been capitalized for financial statement purposes and are, therefore, not included in the accompanying Statement of Activities.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The County recognizes federal grants in excess of program expenditures as deferred awards. Deferred awards utilized as expenses are incurred through performance of the program.
Title: ACCRUED AWARDS
Accounting Policies: Expenditures included in the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Pass-through entity identifying numbers are presented where applicable. Certain costs included in the accompanying Schedule of Expenditures of Federal Awards have been capitalized for financial statement purposes and are, therefore, not included in the accompanying Statement of Activities.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
Grant revenues are accrued according to the specifications set forth in the specific grant agreements. Grants received by the County are based upon funds available for distribution by the grantor or pass-through entity. Therefore, the County recognizes expenditures in excess of grants as accrued awards.
Title: ADJUSTMENTS
Accounting Policies: Expenditures included in the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Pass-through entity identifying numbers are presented where applicable. Certain costs included in the accompanying Schedule of Expenditures of Federal Awards have been capitalized for financial statement purposes and are, therefore, not included in the accompanying Statement of Activities.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
Various adjustments were made to the (Accrued) Deferred at January 1 totals due to either receiving reimbursement for additional 2022 expenses that were not previously recorded in the previous report, an inaccurate previous estimate resulting in no additional funds being due to the County, a change of ALN number, modifying the amounts listed between a COVID vs Non-COVID portion of grant funding , or the return of awarded funds that were not spent within the specified timeframe. The most significant adjustment is the return of unused ERAP 2 funds.
During 2023, the County was unable to spend all of the ERAP 2 funding received within the specified timeframe. As such, the County returned funds totaling $2,243,796.79 to the Bureau of Financial Operations, Financial Reporting & Payments Section on 4/28/23.