3. Relationship to Basic Financial Statements Amounts reported in the accompanying schedules agree with amounts reported in the District’s basic financial statements. The basic financial statements present the general fund and special revenue fund on a GAAP basis. Budgetary comparison statements and schedules (RSI) are presented for the general fund and special revenue fund to demonstrate finance-related legal compliance in which certain revenue is permitted by law or grant agreement to be recognized in the fiscal year, whereas for GAAP reporting, revenue is not recognized until the subsequent year or when expenditures have been made. 3. Relationship to Basic Financial Statements (continued) The general fund is presented in the accompanying schedules on the modified accrual basis of accounting except for the revenue recognition of the last state aid payments in the current year, which is mandated pursuant to N.J.S.A. 18A:22-44.2. For GAAP purposes, the payments are not recognized until the subsequent year due to the state deferral and recording of the last state aid payments in the subsequent year. The special revenue fund is presented in the accompanying schedules on the grant accounting budgetary basis, which recognizes encumbrances as expenditures and recognizes the related revenues, whereas the GAAP basis does not. The net adjustment to reconcile from the budgetary basis to the GAAP basis is $37,284 for the general fund, $23,695 for the special revenue fund, and $204,586 for the capital projects fund. The net adjustment to See the Note to Required Supplementary Information (C-3) for a reconciliation of the budgetary basis to the GAAP basis of accounting for the general fund, special revenue fund, debt service fund and enterprise fund. Financial award revenues are reported in the District’s basic financial statements on a GAAP basis as follows: Federal State Total General Fund $ 25,575,585 $ 25,575,585 Special Revenue Fund Capital Projects Fund Debt Service Fund $ 927,769 278,790 1,383,654 225,630 1,206,559 1,383,654 225,630 Total financial award revenues $ 927,769 $27,463,659 $ 28,391,428
4. Relationship to Federal and State Financial Reports Amounts reported in the accompanying schedules agree with the amounts reported in the related federal and state financial reports.
5. Other TPAF Social Security Contributions represent the amounts reimbursed by the State for the employer’s share of social security contributions for TPAF members for the year ended June 30, 2025. The post retirement pension, disability insurance and medical benefits received on-behalf of the District for the year ended June 30, 2025 amounted to $15,797,106, Since on-behalf post retirement pension, disability insurance and medical benefits are paid by the State directly, these expenditures are not subject to a single audit in accordance with New Jersey OMB Circular 15-08, however, they are reported on the Schedule of Expenditures of State Financial Assistance, as directed by the funding agency.