Notes to SEFA
Title: Basis of Presentation
Accounting Policies: Expenditures reported on the schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance and NJ Circular 15-08-OMB, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The amounts reported in the schedule as expenditures may differ from certain financial reports submitted to federal and state funding agencies due to those reports being submitted on either a cash or modified accrual basis of accounting.
De Minimis Rate Used: Y
Rate Explanation: The Food Bank elected to use the de minimis rate allowable under Uniform Guidance for three federal awards.
The accompanying schedule of expenditures of federal awards and state financial assistance includes the federal and state awards activity of Community Food Bank of New Jersey, Inc. (the “Food Bank”) under programs of the federal and state governments for the year ended June 30, 2024. The information in this schedule is 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 State of New Jersey, Department of the Treasury, OMB Policy Circular 15-08-OMB ("NJ Circular 15-08-OMB"). Because the schedule presents only a selected portion of the operations of the Food Bank, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Food Bank.
Title: Federal Donated Commodities
Accounting Policies: Expenditures reported on the schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance and NJ Circular 15-08-OMB, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The amounts reported in the schedule as expenditures may differ from certain financial reports submitted to federal and state funding agencies due to those reports being submitted on either a cash or modified accrual basis of accounting.
De Minimis Rate Used: Y
Rate Explanation: The Food Bank elected to use the de minimis rate allowable under Uniform Guidance for three federal awards.
The value of nonmonetary assistance in the form of donated commodities is reported in the schedule of expenditures of federal awards and state financial assistance when distributed, based on the value of the commodities when received. This value is generally fair value on the date of receipt but may be an assessed value if provided by the Department of Agriculture. At June 30, 2024, the Food Bank had federal
food commodities totaling $7,721,889 recorded in inventory that is available for distribution during the subsequent fiscal year.
Title: State Food Purchase Program
Accounting Policies: Expenditures reported on the schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance and NJ Circular 15-08-OMB, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The amounts reported in the schedule as expenditures may differ from certain financial reports submitted to federal and state funding agencies due to those reports being submitted on either a cash or modified accrual basis of accounting.
De Minimis Rate Used: Y
Rate Explanation: The Food Bank elected to use the de minimis rate allowable under Uniform Guidance for three federal awards.
Funds received from the State of New Jersey to purchase food are recorded as deferred revenue until utilized. At the time food is purchased, it is recorded as inventory. Food is recorded on the schedule of expenditures of federal awards and state financial assistance as revenue when distributed. The inventory of food on hand at June 30, 2024 purchased with State of New Jersey funds was $865,529.