Title: 1. General
Accounting Policies: The accompanying schedules of expenditures of federal and state awards are presented on 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 Note 1 to the Board's basic financial statements.
De Minimis Rate Used: N
Rate Explanation: The District has elected not to use the 10-percent de minimis indirect cost rate allowed under
the Uniform Guidance.
The accompanying schedules of expenditures of award present the activity of all federal and
state awards of the Board of Education of Freehold Township School District. The Board of
Education is defined in Note 1(A) to the Board's general purpose financial statements. All federal
and state awards received directly from federal and state agencies, as well as federal and state
awards passed through other government agencies are included on the schedules of
expenditures of federal and state awards.
Title: 2. Basis of Accounting
Accounting Policies: The accompanying schedules of expenditures of federal and state awards are presented on 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 Note 1 to the Board's basic financial statements.
De Minimis Rate Used: N
Rate Explanation: The District has elected not to use the 10-percent de minimis indirect cost rate allowed under
the Uniform Guidance.
The accompanying schedules of expenditures of federal and state awards are presented on 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 Note 1 to the Board's basic financial statements
Title: 3. Relationship to Basic Financial Statements
Accounting Policies: The accompanying schedules of expenditures of federal and state awards are presented on 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 Note 1 to the Board's basic financial statements.
De Minimis Rate Used: N
Rate Explanation: The District has elected not to use the 10-percent de minimis indirect cost rate allowed under
the Uniform Guidance.
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 $(12,013,052) for
the general fund, $170,887 for the special revenue fund. See Exhibit C-3 for a reconciliation of
the budgetary basis to the GAAP basis of accounting for the general and special revenue fund.
Awards and financial assistance revenues are reported in the Board's basic financial statements
on a GAAP basis as presented on the following page.
Title: 3. Relationship to Basic Financial Statements (Cont'd)
Accounting Policies: The accompanying schedules of expenditures of federal and state awards are presented on 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 Note 1 to the Board's basic financial statements.
De Minimis Rate Used: N
Rate Explanation: The District has elected not to use the 10-percent de minimis indirect cost rate allowed under
the Uniform Guidance.
Federal State Total
General Fund $ 130,066 $ 12,490,470 $ 12,620,536
Special Revenue Fund 2,274,806 160,279 2,435,085
Debt Service Fund - 38,643 38,643
Capital Projects Fund - - -
Food Service Fund 490,969 20,148 511,117
Total awards and
financial assistance $ 2,895,841 $ 12,709,540 $ 15,605,381
Title: 4. Relationship to Federal and State Financial Reports
Accounting Policies: The accompanying schedules of expenditures of federal and state awards are presented on 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 Note 1 to the Board's basic financial statements.
De Minimis Rate Used: N
Rate Explanation: The District has elected not to use the 10-percent de minimis indirect cost rate allowed under
the Uniform Guidance.
Amounts reported in the accompanying schedules agree with the amounts reported in the
related federal and state financial reports.
Title: 5. Other
Accounting Policies: The accompanying schedules of expenditures of federal and state awards are presented on 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 Note 1 to the Board's basic financial statements.
De Minimis Rate Used: N
Rate Explanation: The District has elected not to use the 10-percent de minimis indirect cost rate allowed under
the Uniform Guidance.
TPAF Social Security and Post Retirement/Medical Benefits Contributions represent the
amounts reimbursed by the State for the employer’s share of social security contributions and
Post Retirement/Medical Benefits for TPAF members for the year ended June 30, 2024.
The TPAF post retirement/medical benefits expenditures are not subject to New Jersey OMB
Circular 15-08.
Title: 6. Indirect Costs
Accounting Policies: The accompanying schedules of expenditures of federal and state awards are presented on 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 Note 1 to the Board's basic financial statements.
De Minimis Rate Used: N
Rate Explanation: The District has elected not to use the 10-percent de minimis indirect cost rate allowed under
the Uniform Guidance.
The District has elected not to use the 10-percent de minimis indirect cost rate allowed under
the Uniform Guidance.