Title: 1. BASIS OF PRESENTATION
Accounting Policies: Expenditures reported on the schedule of expenditures of federal awards and state financial assistance are reported on the modified accrual basis of accounting. This basis of accounting is described in Note 1 to the financial statements. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administration Requirements, Cost Principles, and Audit requirements for Federal Awards, and State of New Jersey Circular 15-08-OMB, Single Audit Policy for Recipients of Federal Grants, State Grants and State Aid, wherein certain types of expenditures are not allowed or are limited as to reimbursement. The expenditures reflected in the schedule of expenditures of federal awards are presented at the federal participation level; thus, any matching portion is not included.
The accompanying schedule of collection and expenditures of passenger facility charges is presented using the cash basis of accounting. PFC receipts are recorded as PFC advanced in the Authority’s financial statements until authorization is received for expenditure of these funds for construction under an FAA-approved application.
De Minimis Rate Used: N
Rate Explanation: The Authority has elected not to use the 10-percent de minims indirect cost rate allowed under the Uniform Guidance.
The accompanying schedules of expenditures of federal awards and state financial assistance (“the schedules”) include federal and state award activity of the South Jersey Transportation Authority (hereafter referring to as the “Authority”) under programs of the federal government and state government for the year ended December 31, 2024. The Authority is defined in Note 1 to the financial statements. The information in these schedules is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) and State of New Jersey Circular 15-08-OMB, Single Audit Policy for Recipients of Federal Grants, State Grants and State Aid. All federal and state awards received directly from federal and state agencies, as well as federal awards and state financial assistance passed through other government agencies, are included on the scheduled. Because these schedules present only a selected portion of the operations of the Authority, it is not intended to and does not present the financial position and changes in operations of the Authority.
In addition, the Authority has been approved by the Federal Aviation Administration (“FAA”) to impose a Passenger Facility Charge (“PFC”) on passengers enplaned at the Atlantic City International Airport. The accompanying schedule of collection and expenditures of passenger facility charges include the PFC’s, and the interest earnings thereon collected by the Authority between October 1, 1999 and December 31, 2024, pursuant to FAA approved applications to collect up to $57,765,575. The information in this schedule is presented in accordance with the requirements of the Federal Aviation Administration, Passenger Facility Charge Audit Guide for Public Agencies.
The Authority has delegated the administration of grant and PFC programs and the reporting functions to various departments within the Authority. Substantially all grant cash funds are commingled with the Authority’s other funds, although each grant is accounted for separately with the Authority’s financial records. PFC collections, including any interest earned on such collections, are maintained in a dedicated cash account. The Finance Department of the Authority performs accounting functions for all grants.
The Authority is a component unit included in the State of New Jersey’s annual comprehensive financial report.
Title: 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Accounting Policies: Expenditures reported on the schedule of expenditures of federal awards and state financial assistance are reported on the modified accrual basis of accounting. This basis of accounting is described in Note 1 to the financial statements. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administration Requirements, Cost Principles, and Audit requirements for Federal Awards, and State of New Jersey Circular 15-08-OMB, Single Audit Policy for Recipients of Federal Grants, State Grants and State Aid, wherein certain types of expenditures are not allowed or are limited as to reimbursement. The expenditures reflected in the schedule of expenditures of federal awards are presented at the federal participation level; thus, any matching portion is not included.
The accompanying schedule of collection and expenditures of passenger facility charges is presented using the cash basis of accounting. PFC receipts are recorded as PFC advanced in the Authority’s financial statements until authorization is received for expenditure of these funds for construction under an FAA-approved application.
De Minimis Rate Used: N
Rate Explanation: The Authority has elected not to use the 10-percent de minims indirect cost rate allowed under the Uniform Guidance.
Expenditures reported on the schedule of expenditures of federal awards and state financial assistance are reported on the modified accrual basis of accounting. This basis of accounting is described in Note 1 to the financial statements. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administration Requirements, Cost Principles, and Audit requirements for Federal Awards, and State of New Jersey Circular 15-08-OMB, Single Audit Policy for Recipients of Federal Grants, State Grants and State Aid, wherein certain types of expenditures are not allowed or are limited as to reimbursement. The expenditures reflected in the schedule of expenditures of federal awards are presented at the federal participation level; thus, any matching portion is not included.
The accompanying schedule of collection and expenditures of passenger facility charges is presented using the cash basis of accounting. PFC receipts are recorded as PFC advanced in the Authority’s financial statements until authorization is received for expenditure of these funds for construction under an FAA-approved application.
Title: 3. INDIRECT COST RATE
Accounting Policies: Expenditures reported on the schedule of expenditures of federal awards and state financial assistance are reported on the modified accrual basis of accounting. This basis of accounting is described in Note 1 to the financial statements. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administration Requirements, Cost Principles, and Audit requirements for Federal Awards, and State of New Jersey Circular 15-08-OMB, Single Audit Policy for Recipients of Federal Grants, State Grants and State Aid, wherein certain types of expenditures are not allowed or are limited as to reimbursement. The expenditures reflected in the schedule of expenditures of federal awards are presented at the federal participation level; thus, any matching portion is not included.
The accompanying schedule of collection and expenditures of passenger facility charges is presented using the cash basis of accounting. PFC receipts are recorded as PFC advanced in the Authority’s financial statements until authorization is received for expenditure of these funds for construction under an FAA-approved application.
De Minimis Rate Used: N
Rate Explanation: The Authority has elected not to use the 10-percent de minims indirect cost rate allowed under the Uniform Guidance.
The Authority has elected not to use the 10-percent de minims indirect cost rate allowed under the Uniform Guidance.
Title: 4. RELATIONSHIP TO FEDERAL AND STATE FINANCIAL REPORTS
Accounting Policies: Expenditures reported on the schedule of expenditures of federal awards and state financial assistance are reported on the modified accrual basis of accounting. This basis of accounting is described in Note 1 to the financial statements. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administration Requirements, Cost Principles, and Audit requirements for Federal Awards, and State of New Jersey Circular 15-08-OMB, Single Audit Policy for Recipients of Federal Grants, State Grants and State Aid, wherein certain types of expenditures are not allowed or are limited as to reimbursement. The expenditures reflected in the schedule of expenditures of federal awards are presented at the federal participation level; thus, any matching portion is not included.
The accompanying schedule of collection and expenditures of passenger facility charges is presented using the cash basis of accounting. PFC receipts are recorded as PFC advanced in the Authority’s financial statements until authorization is received for expenditure of these funds for construction under an FAA-approved application.
De Minimis Rate Used: N
Rate Explanation: The Authority has elected not to use the 10-percent de minims indirect cost rate allowed under the Uniform Guidance.
Amounts reported in the accompanying schedule agree with the amounts reported in the reported in the related federal and state financial reports.
Title: 5. MAJOR PROGRAMS
Accounting Policies: Expenditures reported on the schedule of expenditures of federal awards and state financial assistance are reported on the modified accrual basis of accounting. This basis of accounting is described in Note 1 to the financial statements. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administration Requirements, Cost Principles, and Audit requirements for Federal Awards, and State of New Jersey Circular 15-08-OMB, Single Audit Policy for Recipients of Federal Grants, State Grants and State Aid, wherein certain types of expenditures are not allowed or are limited as to reimbursement. The expenditures reflected in the schedule of expenditures of federal awards are presented at the federal participation level; thus, any matching portion is not included.
The accompanying schedule of collection and expenditures of passenger facility charges is presented using the cash basis of accounting. PFC receipts are recorded as PFC advanced in the Authority’s financial statements until authorization is received for expenditure of these funds for construction under an FAA-approved application.
De Minimis Rate Used: N
Rate Explanation: The Authority has elected not to use the 10-percent de minims indirect cost rate allowed under the Uniform Guidance.
Major programs are identified in the Summary of Auditor’s Results section of the Schedule of Findings and Questioned Costs.
Title: 6. PASSENGER FACILITY CHARGES
Accounting Policies: Expenditures reported on the schedule of expenditures of federal awards and state financial assistance are reported on the modified accrual basis of accounting. This basis of accounting is described in Note 1 to the financial statements. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administration Requirements, Cost Principles, and Audit requirements for Federal Awards, and State of New Jersey Circular 15-08-OMB, Single Audit Policy for Recipients of Federal Grants, State Grants and State Aid, wherein certain types of expenditures are not allowed or are limited as to reimbursement. The expenditures reflected in the schedule of expenditures of federal awards are presented at the federal participation level; thus, any matching portion is not included.
The accompanying schedule of collection and expenditures of passenger facility charges is presented using the cash basis of accounting. PFC receipts are recorded as PFC advanced in the Authority’s financial statements until authorization is received for expenditure of these funds for construction under an FAA-approved application.
De Minimis Rate Used: N
Rate Explanation: The Authority has elected not to use the 10-percent de minims indirect cost rate allowed under the Uniform Guidance.
During 2024, the Authority disbursed $230,431 of PFC’s, all of which was utilized for construction projects at the Atlantic City International Airport.