Audit 363260

Title: RELATIONSHIP TO BASIC REGULATORY BASIS FINANCIAL STATEMENTS Accounting Policies: GENERAL The accompanying schedule of expenditures of federal awards and state financial assistance present the activity of all federal awards and state financial assistance of the City of Asbury Park. The City is defined in Note 1 to the City’s basic financial statements. To the extent identified, the federal award and state financial assistance that passed through other governmental agencies is included on the schedules of expenditures of federal awards and state financial assistance. BASIS OF ACCOUNTING The accompanying schedule of expenditures of federal awards and state financial assistance are presented using the regulatory basis of accounting prescribed by the Division of Local Government Services, Department of Community Affairs, State of New Jersey, which is described in Note 1, Summary of Significant Accounting Policies, of the City's financial statements. The information in the schedule of expenditures of federal awards and financial assistance is presented in accordance with the OMB Uniform Guidance and New Jersey OMB 15-08. De Minimis Rate Used: N Rate Explanation: The City did not use the 10% de minimis indirect cost rate as allowed by the Uniform Guidance. Amounts reported in the accompanying schedule are reported on the cash basis and amounts reported in the City’s regulatory basis financial statement is reported on the basis of accounting as described in Note 1 to the City’s basic financial statements.

Title: RELATIONSHIP TO FEDERAL FINANCIAL REPORTS Accounting Policies: GENERAL The accompanying schedule of expenditures of federal awards and state financial assistance present the activity of all federal awards and state financial assistance of the City of Asbury Park. The City is defined in Note 1 to the City’s basic financial statements. To the extent identified, the federal award and state financial assistance that passed through other governmental agencies is included on the schedules of expenditures of federal awards and state financial assistance. BASIS OF ACCOUNTING The accompanying schedule of expenditures of federal awards and state financial assistance are presented using the regulatory basis of accounting prescribed by the Division of Local Government Services, Department of Community Affairs, State of New Jersey, which is described in Note 1, Summary of Significant Accounting Policies, of the City's financial statements. The information in the schedule of expenditures of federal awards and financial assistance is presented in accordance with the OMB Uniform Guidance and New Jersey OMB 15-08. De Minimis Rate Used: N Rate Explanation: The City did not use the 10% de minimis indirect cost rate as allowed by the Uniform Guidance. Amounts reported in the accompanying schedule agree with the amounts reported in the related federal and state financial reports.