Title: Note 3. Relationship to Basic Financial Statements
Accounting Policies: The accompanying schedules of expenditures of federal awards and state financial assistance are presented
using the budgetary basis of accounting with the following exception: programs recorded in the enterprise
fund are presented using the accrual basis of accounting and programs recorded in the capital projects fund
are presented using the modified accrual basis of accounting. These bases of accounting are described in
Note 1 to the School District’s basic financial statements. 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 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: Revenues and expenditures reported under the Food Distribution Program represent current year value
received and current year distributions respectively. The amount reported as TPAF Pension Contributions
represents the amount paid by the state on behalf of the School District for the year ended June 30, 2024.
TPAF Social Security Contributions represents the amount reimbursed by the state for the employer’s share
of social security contributions for TPAF members for the year ended June 30, 2024.
The basic financial statements present the general fund and special revenue fund on a GAAP basis.
Budgetary comparison statements or schedules (RSI) are presented for the general fund and special revenue
fund to demonstrate finance-related legal compliance in which certain revenue is permitted by law or grant
agreement to be recognized in the audit year, whereas for GAAP reporting, revenue is not recognized until
the subsequent year or when expenditures have been made. The general fund is presented in the accompanying schedules on the modified accrual basis with the
exception of the revenue recognition of the one or more deferred June state aid payments in the current
budget year, which is mandated pursuant to N.J.S.A. 18A:22-44.2. For GAAP purposes payments are not
recognized until the subsequent budget year due to the state deferral and recording of the one or more June
state aid payments in the subsequent year. The special revenue fund is presented in the accompanying
schedules on the grant accounting budgetary basis, which recognizes encumbrances as expenditures and
also recognizes the related revenues, whereas the GAAP basis does not. The special revenue fund also
recognizes the one or more state aid June payments in the current budget year, consistent with N.J.S.A.
18A:22-4.2.The net adjustment to reconcile from the budgetary basis to the GAAP basis is $73,813 for the general fund
and $280,203 for the special revenue fund. See Exhibit C-3 Note A of the basic financial statements, for a
reconciliation of the budgetary basis to the modified accrual basis of accounting for the general and special
revenue funds. Awards and financial assistance expenditures reported in the School District’s basic
financial statements on a GAAP basis are presented as follows:
Title: Note 4. Relationship to Federal and State Financial Reports
Accounting Policies: The accompanying schedules of expenditures of federal awards and state financial assistance are presented
using the budgetary basis of accounting with the following exception: programs recorded in the enterprise
fund are presented using the accrual basis of accounting and programs recorded in the capital projects fund
are presented using the modified accrual basis of accounting. These bases of accounting are described in
Note 1 to the School District’s basic financial statements. 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 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: Revenues and expenditures reported under the Food Distribution Program represent current year value
received and current year distributions respectively. The amount reported as TPAF Pension Contributions
represents the amount paid by the state on behalf of the School District for the year ended June 30, 2024.
TPAF Social Security Contributions represents the amount reimbursed by the state for the employer’s share
of social security contributions for TPAF members for the year ended June 30, 2024.
Amounts reported in the accompanying schedules agree with the amounts reported in the related federal
and state financial reports.
Title: Note 5. Federal and State Loans Outstanding
Accounting Policies: The accompanying schedules of expenditures of federal awards and state financial assistance are presented
using the budgetary basis of accounting with the following exception: programs recorded in the enterprise
fund are presented using the accrual basis of accounting and programs recorded in the capital projects fund
are presented using the modified accrual basis of accounting. These bases of accounting are described in
Note 1 to the School District’s basic financial statements. 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 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: Revenues and expenditures reported under the Food Distribution Program represent current year value
received and current year distributions respectively. The amount reported as TPAF Pension Contributions
represents the amount paid by the state on behalf of the School District for the year ended June 30, 2024.
TPAF Social Security Contributions represents the amount reimbursed by the state for the employer’s share
of social security contributions for TPAF members for the year ended June 30, 2024.
The Lenape Regional High School District had no loan balances outstanding at June 30, 2024.