Title: NOTE C. REPORTING ENTITY
Accounting Policies: The accounting policies of the City conform to the accounting principles and practices prescribed by the Division of Local
Government Services, Department of Community Affairs, State of New Jersey (the “Division”). 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 City
accounts for federal awards and state financial assistance through the following accounting practices which differ from those
required by accounting principles generally accepted in the United States of America.
Accounting functions for the grants are performed by the City’s Accounts and Control. Grant and program cash funds may
be commingled with the City’s other funds provided each grant is accounted for separately within the City’s financial
records.
In accordance with the Division’s directives, the City (a) fully realizes grant revenues anticipated in the Current Fund
operating budget and establishes a corresponding receivable for each grant in the State and Federal Grants Fund, and (b) fully
charges grants appropriated in the Current Fund operating budget and establishes a corresponding spending reserve, referred
to as an ‘Appropriated Reserve’ in the State and Federal Grants Fund. In some instances, grants anticipated and appropriated
in the Current Fund operating budget may be established as receivables and reserves in a Trust Fund instead of the State and
Federal Grants Fund.
Local Contributions – Local matching contributions are required by certain federal and state grants. The amount or
percentage of matching contributions varies with each program. Local matching contributions are raised in the Current Fund
budget.
De Minimis Rate Used: N
Rate Explanation: The City is not utilizing the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance.
The City of Jersey City (the “City”), received and continues to participate in numerous federal award and state financial
assistance programs, in the form of grant cost reimbursements and revenue sharing entitlements. The City is the reporting
entity for the grant programs received. Administration of the grant programs is performed by the various departments of the
City. The City, for purposes of the schedules of expenditures of federal awards and state financial assistance, includes all of
the primary government as defined criteria established by the Governmental Accounting Standards Board. The City
administers certain federal and state award programs through subrecipients. Those subrecipients are not considered part of
the City’s reporting entity.
Title: NOTE D. BASIS OF PRESENTATION
Accounting Policies: The accounting policies of the City conform to the accounting principles and practices prescribed by the Division of Local
Government Services, Department of Community Affairs, State of New Jersey (the “Division”). 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 City
accounts for federal awards and state financial assistance through the following accounting practices which differ from those
required by accounting principles generally accepted in the United States of America.
Accounting functions for the grants are performed by the City’s Accounts and Control. Grant and program cash funds may
be commingled with the City’s other funds provided each grant is accounted for separately within the City’s financial
records.
In accordance with the Division’s directives, the City (a) fully realizes grant revenues anticipated in the Current Fund
operating budget and establishes a corresponding receivable for each grant in the State and Federal Grants Fund, and (b) fully
charges grants appropriated in the Current Fund operating budget and establishes a corresponding spending reserve, referred
to as an ‘Appropriated Reserve’ in the State and Federal Grants Fund. In some instances, grants anticipated and appropriated
in the Current Fund operating budget may be established as receivables and reserves in a Trust Fund instead of the State and
Federal Grants Fund.
Local Contributions – Local matching contributions are required by certain federal and state grants. The amount or
percentage of matching contributions varies with each program. Local matching contributions are raised in the Current Fund
budget.
De Minimis Rate Used: N
Rate Explanation: The City is not utilizing the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance.
The accompanying schedules of expenditures of federal awards and state financial assistance (the “Schedules”) present the
activity of all federal and state programs of the City. All federal awards received directly from federal agencies or passed
through other government agencies are included on the schedule of expenditures of federal awards. All state awards received
directly from state agencies or passed through other government agencies are included in the schedule of expenditures of
state financial assistance. The information in these Schedules are presented in accordance with the requirements of Title 2
U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and audit Requirements
for Federal Awards (Uniform Guidance) and New Jersey OMB Circular Letter 15-08 Single Audit Policy for Recipients of
Federal Grants, State Grants and State Aid.
Title: NOTE E. MONITORING OF SUB-RECIPIENTS
Accounting Policies: The accounting policies of the City conform to the accounting principles and practices prescribed by the Division of Local
Government Services, Department of Community Affairs, State of New Jersey (the “Division”). 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 City
accounts for federal awards and state financial assistance through the following accounting practices which differ from those
required by accounting principles generally accepted in the United States of America.
Accounting functions for the grants are performed by the City’s Accounts and Control. Grant and program cash funds may
be commingled with the City’s other funds provided each grant is accounted for separately within the City’s financial
records.
In accordance with the Division’s directives, the City (a) fully realizes grant revenues anticipated in the Current Fund
operating budget and establishes a corresponding receivable for each grant in the State and Federal Grants Fund, and (b) fully
charges grants appropriated in the Current Fund operating budget and establishes a corresponding spending reserve, referred
to as an ‘Appropriated Reserve’ in the State and Federal Grants Fund. In some instances, grants anticipated and appropriated
in the Current Fund operating budget may be established as receivables and reserves in a Trust Fund instead of the State and
Federal Grants Fund.
Local Contributions – Local matching contributions are required by certain federal and state grants. The amount or
percentage of matching contributions varies with each program. Local matching contributions are raised in the Current Fund
budget.
De Minimis Rate Used: N
Rate Explanation: The City is not utilizing the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance.
Under the requirements of the Single Audit Act and State regulations, if the City, as a primary recipient, receives federal and
state financial assistance and provides $750,000 or more of such assistance to a sub-recipient in a fiscal year, the City is
responsible for determining that the expenditures of federal and state monies passed through to sub-recipients are utilized in
accordance with applicable laws and regulations.
Title: NOTE F. RELATIONSHIP TO FEDERAL FINANCIAL REPORTS
Accounting Policies: The accounting policies of the City conform to the accounting principles and practices prescribed by the Division of Local
Government Services, Department of Community Affairs, State of New Jersey (the “Division”). 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 City
accounts for federal awards and state financial assistance through the following accounting practices which differ from those
required by accounting principles generally accepted in the United States of America.
Accounting functions for the grants are performed by the City’s Accounts and Control. Grant and program cash funds may
be commingled with the City’s other funds provided each grant is accounted for separately within the City’s financial
records.
In accordance with the Division’s directives, the City (a) fully realizes grant revenues anticipated in the Current Fund
operating budget and establishes a corresponding receivable for each grant in the State and Federal Grants Fund, and (b) fully
charges grants appropriated in the Current Fund operating budget and establishes a corresponding spending reserve, referred
to as an ‘Appropriated Reserve’ in the State and Federal Grants Fund. In some instances, grants anticipated and appropriated
in the Current Fund operating budget may be established as receivables and reserves in a Trust Fund instead of the State and
Federal Grants Fund.
Local Contributions – Local matching contributions are required by certain federal and state grants. The amount or
percentage of matching contributions varies with each program. Local matching contributions are raised in the Current Fund
budget.
De Minimis Rate Used: N
Rate Explanation: The City is not utilizing the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance.
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 agency. Accordingly, the amounts reported in the federal and state
financial reports do not necessarily agree with the amounts reported in the accompanying schedules of expenditures of federal
awards and state financial assistance, which are prepared on the basis of accounting explained in Note A.
Title: NOTE G. PASS-THROUGH AWARDS AND COMMINGLED ASSISTANCE
Accounting Policies: The accounting policies of the City conform to the accounting principles and practices prescribed by the Division of Local
Government Services, Department of Community Affairs, State of New Jersey (the “Division”). 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 City
accounts for federal awards and state financial assistance through the following accounting practices which differ from those
required by accounting principles generally accepted in the United States of America.
Accounting functions for the grants are performed by the City’s Accounts and Control. Grant and program cash funds may
be commingled with the City’s other funds provided each grant is accounted for separately within the City’s financial
records.
In accordance with the Division’s directives, the City (a) fully realizes grant revenues anticipated in the Current Fund
operating budget and establishes a corresponding receivable for each grant in the State and Federal Grants Fund, and (b) fully
charges grants appropriated in the Current Fund operating budget and establishes a corresponding spending reserve, referred
to as an ‘Appropriated Reserve’ in the State and Federal Grants Fund. In some instances, grants anticipated and appropriated
in the Current Fund operating budget may be established as receivables and reserves in a Trust Fund instead of the State and
Federal Grants Fund.
Local Contributions – Local matching contributions are required by certain federal and state grants. The amount or
percentage of matching contributions varies with each program. Local matching contributions are raised in the Current Fund
budget.
De Minimis Rate Used: N
Rate Explanation: The City is not utilizing the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance.
The City receives federal and state awards passed-through different levels of government. As a result, the individual sources
of federal and state awards may be commingled and not always separately identifiable. In instances in which the federal
amounts received are commingled by the state or other levels of government with other funds and cannot be separately
identified, they are reported as federal expenditures. In instances in which the state amounts received are commingled by
other levels of government, other than federal, and cannot be separately identified, they are reported as state expenditures.
The following awards include both state and federal funding which are not separately identifiable, and which are reported on
the schedule of expenditures of federal awards
Aging Cluster - The City annually receives a “Senior Nutrition” Grant from the County of Hudson, Area Agency on Aging.
This Senior Nutrition award includes funds for CFDA No. 93.045, 93.053 and 93.667, but the City’s accounting system does
not separate the expenditures for the Senior Nutrition Grant by the individual CFDA Numbers. The Schedule of
Expenditures of Federal Awards presents the total expenditures under the “Aging Cluster”.
Title: NOTE H. CONTINGENCIES
Accounting Policies: The accounting policies of the City conform to the accounting principles and practices prescribed by the Division of Local
Government Services, Department of Community Affairs, State of New Jersey (the “Division”). 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 City
accounts for federal awards and state financial assistance through the following accounting practices which differ from those
required by accounting principles generally accepted in the United States of America.
Accounting functions for the grants are performed by the City’s Accounts and Control. Grant and program cash funds may
be commingled with the City’s other funds provided each grant is accounted for separately within the City’s financial
records.
In accordance with the Division’s directives, the City (a) fully realizes grant revenues anticipated in the Current Fund
operating budget and establishes a corresponding receivable for each grant in the State and Federal Grants Fund, and (b) fully
charges grants appropriated in the Current Fund operating budget and establishes a corresponding spending reserve, referred
to as an ‘Appropriated Reserve’ in the State and Federal Grants Fund. In some instances, grants anticipated and appropriated
in the Current Fund operating budget may be established as receivables and reserves in a Trust Fund instead of the State and
Federal Grants Fund.
Local Contributions – Local matching contributions are required by certain federal and state grants. The amount or
percentage of matching contributions varies with each program. Local matching contributions are raised in the Current Fund
budget.
De Minimis Rate Used: N
Rate Explanation: The City is not utilizing the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance.
Entitlement to grant funds is generally conditional upon compliance with terms and conditions of the grant agreements and
applicable laws and regulations. Federal and state grants, entitlements and cost reimbursements are subject to financial and
compliance audits by grantors. Such contingencies are fully disclosed in the Notes to the Financial Statements.