Title: A. GENERAL
Accounting Policies: The accompanying schedules of financial assistance are 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 public officials with respect to public funds. Under this method of accounting, the County 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 schedules of expenditures of federal awards and state financial assistance 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 County does not have an indirect cost allocation plan nor does it use the de minimis indirect cost rate of 10%.
The accompanying schedules of expenditures present the activity of all federal and state financial assistance programs of the County of Atlantic, State of New Jersey (“County”). The County is defined in Note A to the County’s financial statements – regulatory basis. The County is the prime sponsor and recipient of various federal and state grant funds. The County has delegated the administration of grant programs and the reporting function to various departments within the County. Substantially all grant and program cash funds are commingled with the County’s other funds, although each grant is accounted for separately within the County’s financial records. The Treasurer’s Office of the County performs accounting functions for all grants.
Title: B. BASIS OF ACCOUNTING
Accounting Policies: The accompanying schedules of financial assistance are 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 public officials with respect to public funds. Under this method of accounting, the County 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 schedules of expenditures of federal awards and state financial assistance 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 County does not have an indirect cost allocation plan nor does it use the de minimis indirect cost rate of 10%.
The accompanying schedules of financial assistance are 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 public officials with respect to public funds. Under this method of accounting, the County 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 schedules of expenditures of federal awards and state financial assistance 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.
Title: C. INDIRECT COST RATE
Accounting Policies: The accompanying schedules of financial assistance are 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 public officials with respect to public funds. Under this method of accounting, the County 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 schedules of expenditures of federal awards and state financial assistance 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 County does not have an indirect cost allocation plan nor does it use the de minimis indirect cost rate of 10%.
The County does not have an indirect cost allocation plan nor does it use the de minimis indirect cost rate of 10%.
Title: D. COMMITMENTS AND CONTINGENCIES
Accounting Policies: The accompanying schedules of financial assistance are 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 public officials with respect to public funds. Under this method of accounting, the County 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 schedules of expenditures of federal awards and state financial assistance 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 County does not have an indirect cost allocation plan nor does it use the de minimis indirect cost rate of 10%.
Each of the grantor agencies reserves the right to conduct additional audits of the County’s grant programs for economy, efficiency and program results. However, the County management does not believe such audits would result in material amounts of disallowed costs.
The County has entered into various contracts with subrecipients and other contractors to perform services or provide goods in the effort to administer such grant funds. Thus, the County has commitments to meet various conditions of such contracts.
Title: E. PUBLIC ASSISTANCE GRANTS
Accounting Policies: The accompanying schedules of financial assistance are 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 public officials with respect to public funds. Under this method of accounting, the County 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 schedules of expenditures of federal awards and state financial assistance 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 County does not have an indirect cost allocation plan nor does it use the de minimis indirect cost rate of 10%.
The County is the recipient of Public Assistance Grants which have been audited separately by the State of New Jersey and are not included in the schedules of expenditures of federal awards and state financial assistance. This program is for the operations of the County Welfare Department.
Title: F. RELATIONSHIP TO GENERAL PURPOSE FINANCIAL STATEMENTS
Accounting Policies: The accompanying schedules of financial assistance are 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 public officials with respect to public funds. Under this method of accounting, the County 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 schedules of expenditures of federal awards and state financial assistance 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 County does not have an indirect cost allocation plan nor does it use the de minimis indirect cost rate of 10%.
Amounts reported in the accompanying schedules agree with amounts reported in the County’s basic financial statements – regulatory basis. Financial assistance revenues and expenditures are reported in the County’s basic financial statements on the basis of accounting prescribed by the Division of Local Government Services, Department of Community Affairs, State of New Jersey. Expenditures Grant Appropriated Reserve Expenditures $33,131,928.55 Less: Non Federal or State Funded Expenditure ($587,529.65) Less: Encumbered Expenditures ($4,920,016.94) Capital Fund Grant Expenditures $5,833,929.26 Public Health Grant Expenditures $2,360,210.98 $35,818,522.20 Reported on: Schedule of Expenditures of Federal Awards $15,953,503.57 Schedule of Expenditures of State Financial Assistance $19,865,018.63 $35,818,522.20
Title: G. RELATIONSHIP TO FEDERAL AND STATE FINANCIAL REPORTS
Accounting Policies: The accompanying schedules of financial assistance are 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 public officials with respect to public funds. Under this method of accounting, the County 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 schedules of expenditures of federal awards and state financial assistance 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 County does not have an indirect cost allocation plan nor does it use the de minimis indirect cost rate of 10%.
Amounts reported in the accompanying schedules agree with the amounts reported in the related federal and state financial reports. Grants consisting of combined federal and state grant funding were reflected in total on the schedule of expenditures of state financial assistance.