Notes to SEFA
The accompanying schedules of financial assistance present the activity of all federal and state financial assistance programs of the County of Cape May, New Jersey. The County is defined in Note 1 to the County's financial statements – regulatory basis.
The accompanying schedules of financial assistance are presented using the modified accrual basis of accounting in accordance with the "Requirements of Audit" as promulgated by the State of New Jersey, Department of Community Affairs, Division of Local Government Services. Such principles and practices are designed primarily for determining compliance with legal provisions and budgetary restrictions and as a means of reporting on the stewardship of public officials with respect to public funds. Under this method of accounting, the County accounts for its financial transactions through separate funds, which differ from the funds required by accounting principles generally accepted in the United States of America (GAAP). The County has elected not to use the 10% de minimis indirect cost rate.
Amounts reported in the accompanying schedules agree with amounts reported in the County’s financial statements – regulatory basis. The financial statements – regulatory basis present the Grant Fund on a budgetary basis. The Grant 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. SEE THE NOTES TO SEFA FOR CHART/TABLE
Amounts reported in the accompanying schedules, excluding local match expenditures, agree with the amounts reported in the related federal and state financial reports.