Notes to SEFA
The accompanying schedules of expenditures of federal awards and state financial assistance are presented using the modified accrual basis of accounting, adjusted for encumbrances, as prescribed by the Division of Local Government Services, Department of Community Affairs, State of New Jersey which differ in certain respects from generally accepted accounting principles (GAAP) applicable to local government units. This basis of accounting is set forth in Note 2 as described above.
The County of Somerset is a recipient of considerable grant awards. With respect to the grant notification process followed by agencies that pass-through federal and state assistance to the County, the County does not always receive timely information with respect to grant funding sources along with the relevant federal assistance listing and account number information from its grantor agencies, which can inhibit the accuracy of information contained in the schedules of expenditures of federal awards and state financial assistance. County management asserts that all reasonable efforts have been made to obtain the appropriate relevant evidence to support the reported federal and state award categories and the federal assistance listing numbers and state grant account numbers presented in the schedules but limited to the extent of the information provided by these agencies.
The County participates in a number of federal and state assisted programs that are subject to audit and adjustment by the respective grantors. The audits of these programs for or including the year ended December 31, 2025, may have not been conducted or completed as of the date of this report. Grantor agencies reserve the right to conduct additional audits of the County's grant program for economy, efficiency, and program results, which may result in disallowed costs to the County. However, County management does not believe such audits would result in any material amounts of disallowed costs.