Audit 356223

Title: Note 1: GENERAL Accounting Policies: The accompanying schedule of expenditures of federal awards and state financial assistance includes the federal and state grant activity of the City of Ventnor City, 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 City has elected not to use the 10% de minimis indirect cost rate. De Minimis Rate Used: N Rate Explanation: The City has elected not to use the 10% de minimis indirect cost rate. The accompanying schedule of expenditures of federal awards and state financial assistance includes the federal and state grant activity of the City of Ventnor City, 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 City has elected not to use the 10% de minimis indirect cost rate.

Title: Note 2: RELATIONSHIP TO GENERAL PURPOSE FINANCIAL STATEMENTS Accounting Policies: The accompanying schedule of expenditures of federal awards and state financial assistance includes the federal and state grant activity of the City of Ventnor City, 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 City has elected not to use the 10% de minimis indirect cost rate. De Minimis Rate Used: N Rate Explanation: The City has elected not to use the 10% de minimis indirect cost rate. Amounts reported in the accompanying schedules agree with amounts reported in the City’s financial statements. Receipts from federal and state grants are realized as revenue when anticipated in the City’s budget. Expenditures are recognized when they become payable. Financial assistance revenue and expenditures are reported in the City’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 SEFA FOR CHART/TABLE