The accompanying schedules of expenditures of awards present the activity of all federal and state awards of the Ocean Academy Charter School. The Charter School is defined in Note 1 to the Charter School's general purpose financial statements. All federal and state awards received directly from federal and state agencies, as well as federal and state awards passed through other government agencies are included on the schedules of expenditures of federal and state awards.
The accompanying schedules of expenditures of federal and state awards are presented on the budgetary basis of accounting with the exception of programs recorded in the food service fund, which are presented using the accrual basis of accounting. These bases of accounting are described in Note 2 to the Charter School's basic financial statements.
The basic financial statements present the general fund and special revenue fund on a GAAP basis. Budgetary comparison statements or 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 audit year, whereas for GAAP reporting, revenue is not recognized until the subsequent year or when expenditures have been made. The general fund is presented in the accompanying schedules on the modified accrual basis with the exception of the revenue recognition of the one or more deferred June state aid payments in the current budget year, which is mandated pursuant to N.J.S.A. 18A:22-44.2. For GAAP purposes payments are not recognized until the subsequent budget year due to the state deferral and recording of the one or more June 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 also recognizes the related revenues, whereas the GAAP basis does not. The special revenue fund also recognizes the one or more state aid June payments in the current budget year, consistent with N.J.S.A. 18A:22-4.2.
The net adjustment to reconcile from the budgetary basis to the GAAP basis is $(863,961) for the general fund and none for the special revenue fund. See Exhibit C-3 for a reconciliation of the budgetary basis to the GAAP basis of accounting for the general and special revenue fund. Awards and financial assistance revenues are reported in the Board's basic financial statements on a GAAP basis as presented below: Federal State Total General Fund $- $3,251,408 $3,251,408 Special Revenue Fund 927,480 64,105 991,585 Debt Service Fund - - - Food Service Fund 553,085 17,256 570,341 Total awards and financial assistance $1,480,565 $3,332,769 $4,813,334
Amounts reported in the accompanying schedules agree with the amounts reported in the related federal and state financial reports.
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 TPAF post retirement/medical benefits expenditures are not subject to New Jersey OMB Circular 15-08.
The Charter School has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.