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 awards present the activity of all federal and
state awards of the Board of Education, Perth Amboy Public 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.
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 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 net adjustment to reconcile from the budgetary basis to the GAAP basis is $(30,316,991) for
the general fund, $(34,247,628) for the special revenue fund and $- for the food service 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 $ 500,189 $ 221,112,158 $ 221,612,347
Special Revenue Fund 42,719,386 22,561,703 65,281,089
Capital Projects Fund - 107,369,303 107,369,303
Food Service Fund 7,787,645 301,693 8,089,338
Total awards and
financial assistance $ 51,007,220 $ 351,344,857 $ 402,352,077
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 Contributions of $5,906,810 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.
The amount reported as TPAF Pension Contributions, LTDI and OPEB of $45,491,345
represent the amounts paid by the state on behalf of the district for the year ended June 30,
2024. The TPAF pension and post retirement/medical benefits expenditures are not subject to
New Jersey OMB Circular 15-08.
Title: 6. School Wide Program Funds
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.
Schoolwide programs are not separate federal programs as defined in U.S. Uniform Guidance;
amounts used in schoolwide programs (i.e., school based budgets) are included in the total
expenditures of the program contributing the funds in the Schedule of Expenditure of Federal
Awards. The following funds by program are included in schoolwide programs in the District.
Federal Program
Title I, Part A: Grants to Local Educational Agencies $ 1,731,185
Title III 400,000
Total $ 2,131,185
Title: 7. 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.