Title: General
Accounting Policies: GAAP
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 Clinton Township School District. The District is defined in Note 1 (A) to the District's Basic Financial Statements. 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 government agencies, are included on the Schedules of Expenditures of Federal Awards and State Financial Assistance.
Title: Basis of accounting
Accounting Policies: GAAP
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 are presented using the budgetary basis of accounting with the exception of programs recorded in the food service fund, which are presented using the accrual basis of accounting. These bases of accounting are described in Notes 1 (C) and 1 (D) to the District's Basic Financial Statements.
Title: Relationship of financial statements
Accounting Policies: GAAP
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The Basic Financial Statements present the general fund and special revenue fund on a GAAP basis. Budgetary comparison statements or schedules 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 budgetary basis which recognizes encumbrances as expenditures and also recognizes the related revenues, whereas the GAAP basis does not.
The net adjustment to reconcile from the budgetary basis to the GAAP basis is ($54,141) for the general fund and ($81,800) for the special revenue fund. See Exhibit C-3 for a reconciliation of the budgetary basis to the modified accrual basis of accounting for the general and special revenue funds.
Title: Relationship of financial statements
Accounting Policies: GAAP
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
Financial assistance revenues are reported in the Board’s financial statements on a GAAP basis as follows:
Federal State Total
General fund $ - $ 9,549,455 $ 9,549,455
Special revenue fund 621,342 918,609 1,539,951
Debt service fund - 540,373 540,373
Food service fund 198,162 6,102 204,264
Total awards and
financial assistance $ 819,504 $ 11,014,539 $ 11,834,053
Title: Relationship to federal and state financial reports
Accounting Policies: GAAP
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 the amounts reported in the related federal and state financial reports.
Title: Other
Accounting Policies: GAAP
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
Revenues and expenditures reported under the USDA Commodities Program represent current year distributions respectively. The amount reported as TPAF Pension contributions represents the amount paid by the state on behalf of the District for the year ended June 30, 2024. TPAF Social Security contribution represents the amount reimbursed by the state for the employer's share of Social Security contributions for TPAF members for the fiscal year ended June 30, 2024.
Title: Indirect costs
Accounting Policies: GAAP
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The District has elected not to utilize the 10% de minimis indirect cost rate.
Title: Adjustments on the schedule of federal awards
Accounting Policies: GAAP
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
On Schedule A, the adjustment for the ARP Basic for $1,011, Title II for $55, Title II for $24, CRRSA – ESSER II for $680 and ARP ESSER Accelerated Learning Coach and Educator Support for $403 are relating to cancelled prior year encumbrances and payables.
Title: Adjustments on the schedule of state awards
Accounting Policies: GAAP
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
On Schedule B, the adjustment for the School Climate grant of $791 is relating to cancelled prior year encumbrances and payables.