Audit 353943

Title: Note 1: BASIS OF PRESENTATION Accounting Policies: The accompanying schedule of federal and state awards includes the federal and state grant activity of the Township of Egg Harbor, New Jersey and is presented on the basis of accounting prescribed by the State of New Jersey, Department of Community Affairs, Division of Local Government Services, which is a comprehensive basis of accounting other than generally accepted accounting principles. Encumbrances are considered in determining the single audit threshold on major programs. The Township has elected not to use the 10% de minimis indirect cost rate. In calculating the total state programs expended, the New Jersey Department of Environmental Protection, Green Acres Trust Loan Program have been excluded. Although the State government is at risk for these funds, the loan proceeds were received and expended in prior years and there are no compliance requirements other than to repay the loans. De Minimis Rate Used: N Rate Explanation: The Township has elected not to use the 10% de minimis indirect cost rate. The accompanying schedule of federal and state awards includes the federal and state grant activity of the Township of Egg Harbor, New Jersey and is presented on the basis of accounting prescribed by the State of New Jersey, Department of Community Affairs, Division of Local Government Services, which is a comprehensive basis of accounting other than generally accepted accounting principles. Encumbrances are considered in determining the single audit threshold on major programs. The Township has elected not to use the 10% de minimis indirect cost rate. In calculating the total state programs expended, the New Jersey Department of Environmental Protection, Green Acres Trust Loan Program have been excluded. Although the State government is at risk for these funds, the loan proceeds were received and expended in prior years and there are no compliance requirements other than to repay the loans.

Title: Note 2: RELATIONSHIP TO GENERAL PURPOSE FINANCIAL STATEMENTS Accounting Policies: The accompanying schedule of federal and state awards includes the federal and state grant activity of the Township of Egg Harbor, New Jersey and is presented on the basis of accounting prescribed by the State of New Jersey, Department of Community Affairs, Division of Local Government Services, which is a comprehensive basis of accounting other than generally accepted accounting principles. Encumbrances are considered in determining the single audit threshold on major programs. The Township has elected not to use the 10% de minimis indirect cost rate. In calculating the total state programs expended, the New Jersey Department of Environmental Protection, Green Acres Trust Loan Program have been excluded. Although the State government is at risk for these funds, the loan proceeds were received and expended in prior years and there are no compliance requirements other than to repay the loans. De Minimis Rate Used: N Rate Explanation: The Township has elected not to use the 10% de minimis indirect cost rate. Amounts reported in the accompanying schedule agree with amounts reported in the Township’s financial statement. Receipts from federal and state grants are realized as revenue when anticipated in the Township’s budget. Expenditures are recognized when they become payable. Financial assistance revenue and expenditures are reported in the Township’s financial statements on the basis of accounting prescribed by the State of New Jersey, Department of Community Affairs, Division of Local Government Services, as follows: SEE THE NOTES TO THE SEFA FOR CHART/TABLE