Audit 324548

Title: Relationship to Basic Financial Statements Accounting Policies: General The accompanying schedules of expenditures of federal awards and state financial assistance present the activity of all expenditures of federal award and state financial assistance programs of Two Rivers Water Reclamation Authority (the “Authority”). The Authority is defined in Note 1 to the Authority’s basic financial statements. The information in this schedule is presented in accordance with the requirements of 2 CFR 200-Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards and New Jersey OMB Circular 15-08, Single Audit Policy for Recipients of Federal Grants, State Grants and State Aid. All federal awards and state financial assistance received directly from federal and state agencies, as well as federal awards and state financial assistance passed through other agencies is included on these schedules of expenditures of federal awards and state financial assistance. Note 2. Summary of Significant Account Policies The accompanying schedules of expenditures of federal awards and state financial assistance are presented on the budgetary basis of accounting. This basis of accounting is described in Note 1 to the Authority’s basic financial statements. The information in this schedule is presented in accordance with the requirements of 2 CFR 200-Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards and New Jersey OMB’s Circular 15-08, Single Audit Policy for Recipients of Federal Grants, State Grants and State Aid. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. De Minimis Rate Used: N Rate Explanation: The Authority has elected not to use the 10% de minimus indirect cost rate as allowed by the Uniform Guidance and New Jersey OMB Circular 15-08. Amounts reported in the accompanying schedules agree with amounts reported in the Authority’s financial statements.

Title: Relationship to Federal Financial Report Accounting Policies: General The accompanying schedules of expenditures of federal awards and state financial assistance present the activity of all expenditures of federal award and state financial assistance programs of Two Rivers Water Reclamation Authority (the “Authority”). The Authority is defined in Note 1 to the Authority’s basic financial statements. The information in this schedule is presented in accordance with the requirements of 2 CFR 200-Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards and New Jersey OMB Circular 15-08, Single Audit Policy for Recipients of Federal Grants, State Grants and State Aid. All federal awards and state financial assistance received directly from federal and state agencies, as well as federal awards and state financial assistance passed through other agencies is included on these schedules of expenditures of federal awards and state financial assistance. Note 2. Summary of Significant Account Policies The accompanying schedules of expenditures of federal awards and state financial assistance are presented on the budgetary basis of accounting. This basis of accounting is described in Note 1 to the Authority’s basic financial statements. The information in this schedule is presented in accordance with the requirements of 2 CFR 200-Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards and New Jersey OMB’s Circular 15-08, Single Audit Policy for Recipients of Federal Grants, State Grants and State Aid. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. De Minimis Rate Used: N Rate Explanation: The Authority has elected not to use the 10% de minimus indirect cost rate as allowed by the Uniform Guidance and New Jersey OMB Circular 15-08. Amounts reported in the accompanying schedules agree with the amounts reported in the related federal financial reports, where applicable.