Audit 33899

Accounting Policies: 1.GENERAL INFORMATIONThe accompanying schedule of expenditures of federal awards and state financial assistance presents the activities in all the federal and state awards programs of Community Food Bank of New Jersey, Inc. (the Food Bank). All financial assistance received directly from federal and state agencies as well as financial assistance passed through other governmental agencies or nonprofit organizations is included on the schedule.2.BASIS OF ACCOUNTINGThe accompanying schedule of expenditures of federal awards and state financial assistance is presented using the accrual basis of accounting. 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.3.RELATIONSHIP TO BASIC FINANCIAL STATEMENTSFederal and state expenditures are reported on the statement of functional expenses as program services. In certain programs, the expenditures reported in the basic financial statements may differ from the expenditures reported in the schedule of expenditures of federal awards and state financial assistance due to program expenditures exceeding grant or contract budget limitations or agency matching or in-kind contributions which are not included as federal awards and state financial assistance. Donated commodities received that have not been distributed are shown as inventory in the statement of financial position. Donated commodities that have been distributed are shown in the statement of activities and changes in net assets as donated food distributed. Distributed food is released from inventory at the fair value on the date of distribution. Due to the generally short periods between receipt of food donations and their subsequent distributions, the fair value on the date of receipt generally approximates the fair value on the date of distribution.4.FEDERAL DONATED COMMODITIESThe value of nonmonetary assistance in the form of donated commodities is reported in the schedule of expenditures of federal awards 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, 2022, the Food Bank had federal food commodities totaling $3,077,222 recorded in inventory that is available for distribution during the subsequent fiscal year.5.STATE FOOD PURCHASE PROGRAMFunds 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, 2022 purchased with State of New Jersey funds was $539,310.6.INDIRECT COST RATEThe de minimis rate was used for two of the federal awards. De Minimis Rate Used: Y Rate Explanation: The auditee used the de minimis cost rate.