Notes to SEFA
The accompanying schedule of expenditures of federal awards (the “schedule”) includes federal award activity of the Township of Hopewell (“Township”) under programs of the federal government for the year ended December 31, 2025. The Township is defined in note 1 to the financial statements. The information in the schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). All federal awards received directly from federal agencies, as well as federal awards passed through other government agencies, are included on the schedule. Because the schedule presents only a selected portion of the operations of the Township, it is not intended to and does not present the financial position and changes in operations of the Township.
Expenditures reported on the schedule are reported in accordance with the Requirements of Audit (“Requirements”) as promulgated by the Division of Local Government Services, Department of Community Affairs, State of New Jersey, and present expenditures on the modified accrual basis of accounting with minor exceptions as mandated by the Requirements. This basis of accounting is described in Note 1 to the financial statements. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowed or are limited as to reimbursement. The expenditures reflected in the schedule are presented at the federal participation level; thus, any matching portion is not included.
The Township has elected not to use the 15-percent de minimis indirect cost rate allowed under the Uniform Guidance.
Amounts reported in the accompanying schedule agree with the amounts reported in the related federal reports.
Amounts reported in the column entitled “adjustments” on the Schedule of Expenditures of Federal Awards represent the cancellation of unexpended grant balances.
The major program is identified in the “Summary of Auditor's Results” section of the Schedule of Findings and Questioned Costs.