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 2 to the Charter School's basic financial statements.
De Minimis Rate Used: N
Rate Explanation: The Charter School has elected not to use the 10-percent de minimis indirect cost rate
allowed under the Uniform Guidance.
The accompanying schedules of expenditures of awards present the activity of all federal and
state awards of the Ocean Academy Charter School. The Charter School is defined in Note 1
to the Charter School'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 2 to the Charter School's basic financial statements.
De Minimis Rate Used: N
Rate Explanation: The Charter School 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 2 to the Charter School'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 2 to the Charter School's basic financial statements.
De Minimis Rate Used: N
Rate Explanation: The Charter School 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.
Title: 3. Relationship to General Purpose Financial Statements (continued)
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 2 to the Charter School's basic financial statements.
De Minimis Rate Used: N
Rate Explanation: The Charter School has elected not to use the 10-percent de minimis indirect cost rate
allowed under the Uniform Guidance.
The net adjustment to reconcile from the budgetary basis to the GAAP basis is $(719,872)
for the general fund and none 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 below:
Federal State Total
General Fund $ - $ 2,672,967 $ 2,672,967
Special Revenue Fund 2,489,793 133,310 2,623,103
Food Service Fund 511,160 19,086 530,246
Total awards and financial
assistance $ 3,000,953 $ 2,825,363 $ 5,826,316
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 2 to the Charter School's basic financial statements.
De Minimis Rate Used: N
Rate Explanation: The Charter School 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 2 to the Charter School's basic financial statements.
De Minimis Rate Used: N
Rate Explanation: The Charter School has elected not to use the 10-percent de minimis indirect cost rate
allowed under the Uniform Guidance.
TPAF Social Security Contributions represent the amounts reimbursed by the State for the
employer’s share of social security contributions 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 2 to the Charter School's basic financial statements.
De Minimis Rate Used: N
Rate Explanation: The Charter School has elected not to use the 10-percent de minimis indirect cost rate
allowed under the Uniform Guidance.
The Charter School has elected not to use the 10-percent de minimis indirect cost rate
allowed under the Uniform Guidance.