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 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 bylaw or grant agreement to be recognized in the fiscal year, whereas for GAAP reporting, 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 of accounting with the exception of the revenue recognition of the last two state aid payments in the current year, which is mandated pursuant to N.J.S.A. 18A:22-44.2. For GAAP purposes, those payments are not recognized until the subsequent year due to the state deferral and recording of the last two 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 last state aid payments in the current budget year, consistent with N.J.S.A. 18A:22-44.2. As a result, the federal account receivable balance in the special revenue fund on the budgetary basis differs from the GAAP basis as follows: Accounts Receivable Budgetary Basis Add: Encumbrances GAAP Basis Federal $945,483 $247,213 $698,270 The adjustment to reconcile from budgetary basis accounts receivable to GAAP basis accounts receivable is $247,213 for the special revenue fund. This is a result of recognizing encumbrances as expenditures on the budgetary basis but not on the GAAP basis. The net adjustment to reconcile from the budgetary basis to the GAAP basis is ($3,009,352) for the general fund and $217,542 for the special revenue fund. See Note to Required Supplementary Information for a reconciliation for the budgetary basis to the modified accrual basis of accounting for the general and special revenue funds (C-3). Federal and State award revenues are reported in the District's basic financial statements on a GAAP basis as follows: Federal State Total General Fund $ 4,892,785 $314,626,981 $319,519,766 Special Revenue Fund 10,441,182 28,622,389 39,063,571 Capital Projects Fund 2,281,023 2,281,023 Debt Service Fund Food Service Fund 7,414,448 1,075,429 249,142 1,075,429 7,663,590 Total financial award revenues $22,748,415 $346,854,964 $369,603,379
Amounts reported in the accompanying schedules agree with the amounts reported in the related federal and state financial reports.
Schoolwide programs are not separate federal programs as defined in U.S. Uniform Guidance; amounts used in schoolwide programs (i.e., school based budgets) are included in the total expenditures of the program contributing the funds in the Schedule of Expenditure of Federal Awards. The following funds by program are included in schoolwide programs in the District. Federal Program Amount Title I, Part A: Grants to Local Educational Agencies $977,579
TPAF Social Security Contributions of $6,163,941 represent the amount 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 and medical benefits received on-behalf of the District for the year ended June 30, 2025 amounted to $29,861,577. 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. The NJSDA is administering and constructing projects on behalf of the District. These expenditures are not subject to a Single Audit in accordance with New Jersey OMB’s Circular 15-08, however they are reported on the Schedule of Expenditures of State Financial Assistance, as directed by the funding agency. The NJSDA expenditures incurred for the year ended June 30, 2025 amounted to $2,281,023.
The adjustment column includes amounts necessary to reconcile program revenues and expenditures to the amounts reported in the District’s financial statements. In the General Fund, adjustments primarily reflect the cancellation of prior year accounts receivable and to reflect prior year grant expenditures previously reported in the General Fund instead of the Special Revenue Fund. In the Special Revenue Fund, adjustments primarily reflect the prior period adjustment related to accounts receivable and deferred revenue balances.