Notes to SEFA
The accompanying schedule of expenditures of federal awards includes the federal grant activity of Somerset County (the County) and is presented on the accrual basis of accounting. The information in this schedule 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). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements.
The County recognizes federal grants in excess of program expenditures as deferred awards. Deferred awards utilized as expenses are incurred through performance of the program.
Grant revenues are accrued according to the specifications set forth in the specific grant agreements. Grants received by the County are based upon funds available for distribution by the grantor or pass-through entity. Therefore, the County recognizes expenditures in excess of grants as accrued awards.