Notes to SEFA
Title: Basis of Presentation:
Accounting Policies: Expenditures reported on the Schedules are reported on the accrual basis of accounting. Suchexpenditures are recognized following the cost principles contained in Uniform Guidance, whereincertain types of expenditures are not allowable or are limited as to reimbursement. Lakewood ChederSchool, Inc. has elected to use the ten percent de minimis indirect cost rate allowed under the UniformGuidance.
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate.
The accompanying schedules of expenditures of federal awards and state financial assistance (theSchedules) include the federal and state grant activity of Lakewood Cheder School, Inc. (the School)under programs of the federal and New Jersey State government for the year ended August 31, 2022.The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code ofFederal Regulations (CFR), Uniform Administrative Requirements, Cost Principles, and AuditRequirements for Federal Awards (Uniform Guidance) ) and the State of New Jersey Department ofTreasury Circular 2015-08 Single Audit Policy for Recipients of Federal Grants, State Grants, and StateAid. Because the Schedule presents only a selected portion of the operations of the Center, it is notintended to and does not present the financial position, changes in net assets, or cash flows of theSchool.
Title: Child Nutrition Programs:
Accounting Policies: Expenditures reported on the Schedules are reported on the accrual basis of accounting. Suchexpenditures are recognized following the cost principles contained in Uniform Guidance, whereincertain types of expenditures are not allowable or are limited as to reimbursement. Lakewood ChederSchool, Inc. has elected to use the ten percent de minimis indirect cost rate allowed under the UniformGuidance.
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate.
Lakewood Cheder School, Inc. was approved by the State of New Jerseys Department of Agriculture,under the National School Lunch Act and Child Nutrition Act of 1966, to operate the Food NutritionProgram which includes both the School Breakfast Program and the National School Lunch Program aswell as the Summer Food Service Program during the summer.
Title: Use of Estimates:
Accounting Policies: Expenditures reported on the Schedules are reported on the accrual basis of accounting. Suchexpenditures are recognized following the cost principles contained in Uniform Guidance, whereincertain types of expenditures are not allowable or are limited as to reimbursement. Lakewood ChederSchool, Inc. has elected to use the ten percent de minimis indirect cost rate allowed under the UniformGuidance.
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate.
The preparation of financial statements in conformity with generally accepted accounting principlesrequires management to make estimates and assumptions that affect certain reported amounts anddisclosures. Accordingly, actual results could differ from those estimates.
Title: Subsequent Events:
Accounting Policies: Expenditures reported on the Schedules are reported on the accrual basis of accounting. Suchexpenditures are recognized following the cost principles contained in Uniform Guidance, whereincertain types of expenditures are not allowable or are limited as to reimbursement. Lakewood ChederSchool, Inc. has elected to use the ten percent de minimis indirect cost rate allowed under the UniformGuidance.
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate.
Management considers events and transactions that occur after the financials statement date, butbefore the financial statements are issued, to provide additional evidence relative to certain estimatesor to identify matters that require additional disclosure. These financial statements were available to beissued on May 31, 2023 and subsequent events have been evaluated through that date.