Notes to SEFA
Title: Basis of Presentation
Accounting Policies: Expenditures reported on the accompanying schedules of expenditures of federal and state awards are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts, if any, shown on the Schedules represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Pass-through identifying numbers are presented where available.
De Minimis Rate Used: N
Rate Explanation: N/A
The accompanying schedules of expenditures of federal and state awards (the “Schedules) include the federal and state grant activity of the Town of Newton under programs of the federal and state governments for the year ended December 31, 2024. The information in these schedules is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (“Uniform Guidance”) and New Jersey's OMB Circular 15-08, Single Audit Policy for Recipients of Federal Grants, State Grants and State Aid. Because the schedules present only a selected portion of the operation of the Town, they are not intended to and do not present the financial position, changes in fund balance or cash flows of the Town.
Title: Relationship to Federal and State Financial Reports
Accounting Policies: Expenditures reported on the accompanying schedules of expenditures of federal and state awards are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts, if any, shown on the Schedules represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Pass-through identifying numbers are presented where available.
De Minimis Rate Used: N
Rate Explanation: N/A
Amounts reported in the accompanying schedules agree with the amounts reported in the related federal and state financial reports.
Title: Loans
Accounting Policies: Expenditures reported on the accompanying schedules of expenditures of federal and state awards are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts, if any, shown on the Schedules represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Pass-through identifying numbers are presented where available.
De Minimis Rate Used: N
Rate Explanation: N/A
The Town of Newton has the following loans outstanding as of December 31, 2024: The Town has received $974,143 in the General Capital Fund and $1,567,963 in the Water/Sewer Utility Capital Fund of NJIB loan proceeds as of December 31, 2024. NJIB project expenditures in the current year totaled $837,834.00 in the General Capital Fund and $749.449.21 in the Water/Sewer Utility Capital Fund. The projects related to the loans are not complete.The Town is in the process of repaying the USDA loan. The projects which relate to the USDA loan are complete and there were no current year expenditures or receipts.