Title: General
Accounting Policies: GAAP
De Minimis Rate Used: N
Rate Explanation: The District has elected not to utilize the 10% de minimis indirect 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 Palisades Park 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 District has elected not to utilize the 10% de minimis indirect 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 District has elected not to utilize the 10% de minimis indirect 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 ($27,862) for the general fund, $3,434,256 for the special revenue fund and ($48,506) for the capital projects 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 and Exhibit F-2 for a reconciliation of the budgetary bases to the modified accrual basis of accounting for the capital projects fund.
Title: Relationship of financial statements
Accounting Policies: GAAP
De Minimis Rate Used: N
Rate Explanation: The District has elected not to utilize the 10% de minimis indirect cost rate.
Financial assistance revenues are reported in the Board’s financial statements on a GAAP basis as follows:
Federal State Total
General fund $ 73,046 $ 10,194,489 $ 10,267,535
Special revenue fund 5,867,893 2,015,058 7,882,951
Capital projects fund - 291,856 291,856
Food service fund 27,957 795,057 823,014
Total awards and financial assistance $ 5,968,896 $ 13,296,460 $ 19,265,356
Title: Relationship to federal and state financial reports
Accounting Policies: GAAP
De Minimis Rate Used: N
Rate Explanation: The District has elected not to utilize the 10% de minimis indirect 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 District has elected not to utilize the 10% de minimis indirect 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 year ended June 30, 2024.
Title: Adjustments on the Schedule of Federal Awards
Accounting Policies: GAAP
De Minimis Rate Used: N
Rate Explanation: The District has elected not to utilize the 10% de minimis indirect cost rate.
Adjustments on the Schedule of Federal Awards On Schedule A; the adjustments for the IDEA Basic grant of $1,325, the Title IV grant of $12,300 and the ARP ESSER grant of $9,750 represent prior year encumbrances being canceled and transactions reclassified from the general fund.
Title: Indirect Costs
Accounting Policies: GAAP
De Minimis Rate Used: N
Rate Explanation: The District has elected not to utilize the 10% de minimis indirect cost rate.
The District has elected not to utilize the 10% de minimis indirect cost rate.