Title: Note 1. Basis of Presentation
Accounting Policies: The accompanying schedules of federal awards and state financial assistance are presented using themodified accrual basis of accounting as promulgated by the State of New Jersey, Department of CommunityAffairs, Division of Local Government Services, which is described in the Notes to the FinancialStatements, Note 1.The amounts shown as current year expenditures represent only the federal and state grant portion of theprogram costs. Such expenditures are recognized following the cost principles contained in Title 2 U.S.Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and AuditRequirements for Federal Awards and State of New Jersey OMB Circular 15-08, Single Audit Policy forRecipients of Federal Grants, State Grants and State Aid, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The accompanying schedules of expenditures of federal awards and state financial assistance present the activity of all federal awards and state financial assistance programs of the Township of Jackson. The Township is defined in Note 1 of the basic financial statements. The information in these schedules 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) and New Jersey OMBs Circular 15-08, Single Audit Policy for Recipients of Federal Grants, State Grants and State Aid. All federal and state awards received directly from federal and state agencies, as well as federal awards and state financial assistance passed through other government agencies is included on the schedule of expenditures of federal awards and state financial assistance.
Title: Note 3. Relationship to Basic Financial Statements
Accounting Policies: The accompanying schedules of federal awards and state financial assistance are presented using themodified accrual basis of accounting as promulgated by the State of New Jersey, Department of CommunityAffairs, Division of Local Government Services, which is described in the Notes to the FinancialStatements, Note 1.The amounts shown as current year expenditures represent only the federal and state grant portion of theprogram costs. Such expenditures are recognized following the cost principles contained in Title 2 U.S.Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and AuditRequirements for Federal Awards and State of New Jersey OMB Circular 15-08, Single Audit Policy forRecipients of Federal Grants, State Grants and State Aid, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
Amounts reported in the accompanying schedules agree with amounts reported in the Township's financial statements. Expenditures from awards are reported in the Township's financial statements as follows: ---------------------------------State Federal Total Current Fund $ - $ 2,444,000.00 $ 2,444,000.00 State & Federal Grant Fund $ 1,163,237.70 $ 139,024.41 $ 1,302,262.11 Trust Fund $ - $ 62,114.93 $ 62,114.93 Total : $ 1,163,237.70 $ 2,645,139.34 $ 3,808,377.04 *Federal monies in the current fund represent Coronavirus State and Local Fiscal Recovery funds utilized for revenue loss.
Title: Note 4. Relationship to Federal and State Financial Reports
Accounting Policies: The accompanying schedules of federal awards and state financial assistance are presented using themodified accrual basis of accounting as promulgated by the State of New Jersey, Department of CommunityAffairs, Division of Local Government Services, which is described in the Notes to the FinancialStatements, Note 1.The amounts shown as current year expenditures represent only the federal and state grant portion of theprogram costs. Such expenditures are recognized following the cost principles contained in Title 2 U.S.Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and AuditRequirements for Federal Awards and State of New Jersey OMB Circular 15-08, Single Audit Policy forRecipients of Federal Grants, State Grants and State Aid, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The regulations and guidelines governing the preparation of federal and state financial reports vary by federal and state agency and among programs administered by the same agencies. Accordingly, the amounts reported in the federal and state financial reports do not necessarily agree with the amounts reported in the accompanying Schedules, which is prepared on the modified accrual basis of accounting as explained in Note 2.
Title: Note 5. Federal and State Loans Outstanding
Accounting Policies: The accompanying schedules of federal awards and state financial assistance are presented using themodified accrual basis of accounting as promulgated by the State of New Jersey, Department of CommunityAffairs, Division of Local Government Services, which is described in the Notes to the FinancialStatements, Note 1.The amounts shown as current year expenditures represent only the federal and state grant portion of theprogram costs. Such expenditures are recognized following the cost principles contained in Title 2 U.S.Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and AuditRequirements for Federal Awards and State of New Jersey OMB Circular 15-08, Single Audit Policy forRecipients of Federal Grants, State Grants and State Aid, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The Township had no loan balances outstanding at December 31, 2022.
Title: Note 6. Contingencies
Accounting Policies: The accompanying schedules of federal awards and state financial assistance are presented using themodified accrual basis of accounting as promulgated by the State of New Jersey, Department of CommunityAffairs, Division of Local Government Services, which is described in the Notes to the FinancialStatements, Note 1.The amounts shown as current year expenditures represent only the federal and state grant portion of theprogram costs. Such expenditures are recognized following the cost principles contained in Title 2 U.S.Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and AuditRequirements for Federal Awards and State of New Jersey OMB Circular 15-08, Single Audit Policy forRecipients of Federal Grants, State Grants and State Aid, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
Each of the grantor agencies reserves the right to conduct additional audits of the Township's grant program for economy, efficiency and program results. However, the Township administration does not believe such audits would results in material amounts of disallowed costs.
Title: Note 7. Major Programs
Accounting Policies: The accompanying schedules of federal awards and state financial assistance are presented using themodified accrual basis of accounting as promulgated by the State of New Jersey, Department of CommunityAffairs, Division of Local Government Services, which is described in the Notes to the FinancialStatements, Note 1.The amounts shown as current year expenditures represent only the federal and state grant portion of theprogram costs. Such expenditures are recognized following the cost principles contained in Title 2 U.S.Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and AuditRequirements for Federal Awards and State of New Jersey OMB Circular 15-08, Single Audit Policy forRecipients of Federal Grants, State Grants and State Aid, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
Major Programs are identified in the Summary of Auditor's Results section of the Schedule of Findings and Questioned Costs.