Audit 362439

Accounting Policies: NOTE 1: GENERAL The accompanying schedule of expenditures of federal awards present the activity of all federal award programs of the Borough of Somerville. The Borough of Somerville is defined in Note 1(A) to the financial statements. To the extent identified, the federal awards and state financial assistance that passed through. NOTE 2: BASIS OF ACCOUNTING The accompanying schedule of expenditures of federal awards is presented using the modified accrual basis of accounting as prescribed by the Division of Local Government Services, Department of Community Affairs, State of New Jersey (OCBOA), which differ in certain respects from generally accepted accounting principles (GAAP) applicable to local government units and as detailed in the Notes to the Financial Statements. NOTE 3: RELATIONSHIP TO REGULATORY BASIS FINANCIAL STATEMENTS Amounts reported in the accompanying schedules agree with amounts reported in the Borough’s financial statements. NOTE 4: RELATIONSHIP TO FEDERAL FINANCIAL REPORTS Amounts reported in the accompanying schedules of expenditures of federal awards agree with the amounts reported in the related federal financial reports, where required. NOTE 5: INDIRECT COST RATE The Borough has elected not to use the ten percent de minimis indirect cost rate as allowed by the Uniform Guidance and New Jersey OMB Circular Letter 15-08. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.