Title: NOTE A. REPORTING ENTITY
Accounting Policies: NOTE C. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESThe accounting policies of the County conform to the accounting principles and practices prescribed by the Division of Local Government Services, Department of Community Affairs, State of New Jersey (the Division). 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 federal awards and state financial assistance through the following accounting practices which differ from those required by accounting principles generally accepted in the United States of America.The County, in accordance with the Divisions directive, fully realizes revenues and charges appropriations when grants are adopted by the governing body in the budget of the Current Fund. The revenues are charged and the receivable accounted for in the Federal and State Grant Fund. Appropriations are charged and the amount allotted for spending is accounted for as an appropriated reserve. Programs within the General Capital Fund and various Trust Funds are accounted for within the equivalent revenue and appropriation (or reserve) accounts for those respective funds. Expenditures are measured from payments charged directly to specific grant programs. Expenditures in the Schedules are measured from payments charged directly to specific grant programs in the underlying accounting records. Federal and state awards provided to sub-recipients are treated as expenditures when paid.Other significant accounting policies are as follows:Local Contributions - Local matching contributions are required by certain federal and state grants. The amount or percentage of matching contributions varies with each program. Local matching contributions are raised in the Current Fund budget.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The County of Hudson, New Jersey (the County), received and continues to participate in numerous federal award and state financial assistance programs, in the form of grant cost reimbursements and revenue sharing entitlements. The County is the reporting entity for the grant programs received. Administration of the grant programs is performed by the various departments and outside offices of the County. Accounting functions for the grants are performed by the Countys Department of Finance and Administration. Grant and program cash funds may be commingled with the Countys other funds provided each grant is accounted for separately within the Countys financial records.The County, for purposes of the schedules of expenditures of federal awards (SEFA) and state financial assistance (SESFA), includes all of the primary government as defined criteria established by the Governmental Accounting Standards Board. The County administers certain federal and state award programs through subrecipients. Those subrecipients are not considered part of the Countys reporting entity.Hudson County Division of WelfareCertain grant programs noted in the schedules of expenditures of federal awards and state financial assistance are administered by the Hudson County Division of Welfare (the agency). All such programs are noted in the schedules of expenditures of federal awards and state financial assistance with the sub-header Administered by the Hudson County Division of Welfare.The financial statements of the agency have been prepared in accordance with the County Welfare Agency Accounting Manual, Ruling 12, published by the State of New Jersey, Department of Human Services, Division of Family Development. The accounting practices prescribed is a comprehensive basis of accounting other than accounting principles generally accepted in the United States of America. Under this basis of accounting revenues and expenditures are recorded on a cash basis.In addition, Assistance Fund transactions after the first of each month are reflected in the subsequent months activity. The Assistance Fund report reflects financial activity in each year for the period of December 2 of the prior year through December 1 of the Current Year.
Title: NOTE B. BASIS OF PRESENTATION
Accounting Policies: NOTE C. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESThe accounting policies of the County conform to the accounting principles and practices prescribed by the Division of Local Government Services, Department of Community Affairs, State of New Jersey (the Division). 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 federal awards and state financial assistance through the following accounting practices which differ from those required by accounting principles generally accepted in the United States of America.The County, in accordance with the Divisions directive, fully realizes revenues and charges appropriations when grants are adopted by the governing body in the budget of the Current Fund. The revenues are charged and the receivable accounted for in the Federal and State Grant Fund. Appropriations are charged and the amount allotted for spending is accounted for as an appropriated reserve. Programs within the General Capital Fund and various Trust Funds are accounted for within the equivalent revenue and appropriation (or reserve) accounts for those respective funds. Expenditures are measured from payments charged directly to specific grant programs. Expenditures in the Schedules are measured from payments charged directly to specific grant programs in the underlying accounting records. Federal and state awards provided to sub-recipients are treated as expenditures when paid.Other significant accounting policies are as follows:Local Contributions - Local matching contributions are required by certain federal and state grants. The amount or percentage of matching contributions varies with each program. Local matching contributions are raised in the Current Fund budget.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The accompanying schedules of expenditures of federal awards and state financial assistance (the Schedules) includes the federal and state award activity of the County under programs of the federal and state government for the year ended December 31, 2022. The information in these Schedules are presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) and New Jersey OMB Circular Letter 15-08 Single Audit Policy for Recipients of Federal Grants, State Grants and State Aid. All federal awards received directly from federal agencies or passed through other government agencies are included on the schedule of expenditures of federal awards. All state awards received directly from state agencies or passed through other government agencies are included on the schedule of expenditures of state financial assistance. Federal awards that are mixed or commingled with State awards and for which the accounting system does not separately delineate expenditures between the commingled Federal and State awards, are recorded as Federal awards. Because the Schedules present only a selected portion of the operations of the County, it is not intended to and does not present the financial position or changes in fund balance of the County.
Title: NOTE H. PASS-THROUGH AWARDS AND COMMINGLED ASSISTANCE
Accounting Policies: NOTE C. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESThe accounting policies of the County conform to the accounting principles and practices prescribed by the Division of Local Government Services, Department of Community Affairs, State of New Jersey (the Division). 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 federal awards and state financial assistance through the following accounting practices which differ from those required by accounting principles generally accepted in the United States of America.The County, in accordance with the Divisions directive, fully realizes revenues and charges appropriations when grants are adopted by the governing body in the budget of the Current Fund. The revenues are charged and the receivable accounted for in the Federal and State Grant Fund. Appropriations are charged and the amount allotted for spending is accounted for as an appropriated reserve. Programs within the General Capital Fund and various Trust Funds are accounted for within the equivalent revenue and appropriation (or reserve) accounts for those respective funds. Expenditures are measured from payments charged directly to specific grant programs. Expenditures in the Schedules are measured from payments charged directly to specific grant programs in the underlying accounting records. Federal and state awards provided to sub-recipients are treated as expenditures when paid.Other significant accounting policies are as follows:Local Contributions - Local matching contributions are required by certain federal and state grants. The amount or percentage of matching contributions varies with each program. Local matching contributions are raised in the Current Fund budget.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The County receives federal and state awards passed-through different levels of government. As a result, the individual sources of federal and state awards may be commingled and not always separately identifiable. In instances in which the federal amounts received are commingled by the state or other levels of government with other funds and cannot be separately identified, they are reported as federal expenditures. In instances in which the state amounts received are commingled by other levels of government, other than federal, and cannot be separately identified, they are reported as state expenditures. The following awards include both state and federal funding which are not separately identifiable, and which are reported on the schedule of expenditures of federal awards:WIA/WIOA ClusterThe County receives grant awards from the New Jersey Department of Labor and Workforce Development (NJDOL) which include pass-through Federal funding commingled with State NJDOL funding. The source of the Federal funds is the Federal Workforce Innovation and Opportunity Act (WIOA), formerly Workforce Investment Act (WIA), which consist of Adult, Youth and Dislocated Worker Program awards. The State funds include the Supplemental Workforce Development Benefits Program (SmartSTEPS) and Workforce Learning Link Program. The Countys accounting system commingles these programs, therefore, the programs are grouped in the SEFA according to the majority funding, CFDA 17.258, and more specifically the WIO/WIOA Cluster, to which each of the Federal programs belong. TANF/Social Services for the HomelessThe County receives grant awards from the New Jersey Department of Human Services (NJDHS) which include pass-through Federal funding commingled with State NJDHS funding. The source of the Federal funds is Temporary Assistance for Needy Families (TANF) and the Social Services Block Grant (SSBG). The State funds include State Social Services for the Homeless, State SSBG and Intensive Care Management. The Countys accounting commingles the State and Federal awards, therefore, the entire amount is reported as Federal funding in the SEFA under CFDA 93.558, despite the majority of the funding coming from State sources. Older Americans Act Area Agency on Aging, Area Plan Contract GrantThe County receives grant awards from the New Jersey Department of Health and Senior Services (NJDHSS) which include pass-through Federal funding commingled with State NJDHSS funding. The source of the Federal funds is Title III, Parts B, C1 and C2, which are part of the Aging Cluster as well as Parts D and E. The State funds include State Weekend Home Delivered Meals, Safe Housing and Transportation Program, Adult Protective Services, State Area Plan Matching Funds, Social Services Block Grant, State Home Delivered Meals, Care Management Quality Assurance Funds, Medicaid, Nutrition Services Incentive Program Funds and Supplemental Funds (formerly COLA). The Countys accounting system commingles these programs, therefore, the programs are grouped in the SEFA according to the majority Federal funding, CFDA 93.045, and more specifically the Aging Cluster, to which the majority of the Federal programs belong.
Title: NOTE D. CONTINGENCIES
Accounting Policies: NOTE C. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESThe accounting policies of the County conform to the accounting principles and practices prescribed by the Division of Local Government Services, Department of Community Affairs, State of New Jersey (the Division). 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 federal awards and state financial assistance through the following accounting practices which differ from those required by accounting principles generally accepted in the United States of America.The County, in accordance with the Divisions directive, fully realizes revenues and charges appropriations when grants are adopted by the governing body in the budget of the Current Fund. The revenues are charged and the receivable accounted for in the Federal and State Grant Fund. Appropriations are charged and the amount allotted for spending is accounted for as an appropriated reserve. Programs within the General Capital Fund and various Trust Funds are accounted for within the equivalent revenue and appropriation (or reserve) accounts for those respective funds. Expenditures are measured from payments charged directly to specific grant programs. Expenditures in the Schedules are measured from payments charged directly to specific grant programs in the underlying accounting records. Federal and state awards provided to sub-recipients are treated as expenditures when paid.Other significant accounting policies are as follows:Local Contributions - Local matching contributions are required by certain federal and state grants. The amount or percentage of matching contributions varies with each program. Local matching contributions are raised in the Current Fund budget.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
Entitlement to the funds is generally conditional upon compliance with terms and conditions of the grant agreements and applicable laws and regulations. Federal and state grants, entitlements and cost reimbursements are subject to financial and compliance audits by grantors. Such contingencies are fully disclosed in the Notes to the Financial Statements.
Title: NOTE E. MONITORING OF SUB-RECIPIENTS
Accounting Policies: NOTE C. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESThe accounting policies of the County conform to the accounting principles and practices prescribed by the Division of Local Government Services, Department of Community Affairs, State of New Jersey (the Division). 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 federal awards and state financial assistance through the following accounting practices which differ from those required by accounting principles generally accepted in the United States of America.The County, in accordance with the Divisions directive, fully realizes revenues and charges appropriations when grants are adopted by the governing body in the budget of the Current Fund. The revenues are charged and the receivable accounted for in the Federal and State Grant Fund. Appropriations are charged and the amount allotted for spending is accounted for as an appropriated reserve. Programs within the General Capital Fund and various Trust Funds are accounted for within the equivalent revenue and appropriation (or reserve) accounts for those respective funds. Expenditures are measured from payments charged directly to specific grant programs. Expenditures in the Schedules are measured from payments charged directly to specific grant programs in the underlying accounting records. Federal and state awards provided to sub-recipients are treated as expenditures when paid.Other significant accounting policies are as follows:Local Contributions - Local matching contributions are required by certain federal and state grants. The amount or percentage of matching contributions varies with each program. Local matching contributions are raised in the Current Fund budget.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
Under the requirements of the Single Audit Act and State regulations, if the County, as a primary recipient, receives federal and state financial assistance and provides $750,000 or more of such assistance to a sub-recipient in a fiscal year, the County is responsible for determining that the expenditures of federal and state monies passed through to sub-recipients are utilized in accordance with applicable laws and regulations.
Title: NOTE F. RELATIONSHIP TO FEDERAL FINANCIAL REPORTS
Accounting Policies: NOTE C. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESThe accounting policies of the County conform to the accounting principles and practices prescribed by the Division of Local Government Services, Department of Community Affairs, State of New Jersey (the Division). 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 federal awards and state financial assistance through the following accounting practices which differ from those required by accounting principles generally accepted in the United States of America.The County, in accordance with the Divisions directive, fully realizes revenues and charges appropriations when grants are adopted by the governing body in the budget of the Current Fund. The revenues are charged and the receivable accounted for in the Federal and State Grant Fund. Appropriations are charged and the amount allotted for spending is accounted for as an appropriated reserve. Programs within the General Capital Fund and various Trust Funds are accounted for within the equivalent revenue and appropriation (or reserve) accounts for those respective funds. Expenditures are measured from payments charged directly to specific grant programs. Expenditures in the Schedules are measured from payments charged directly to specific grant programs in the underlying accounting records. Federal and state awards provided to sub-recipients are treated as expenditures when paid.Other significant accounting policies are as follows:Local Contributions - Local matching contributions are required by certain federal and state grants. The amount or percentage of matching contributions varies with each program. Local matching contributions are raised in the Current Fund budget.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The regulations and guidelines governing the preparation of federal and state financial reports vary by federal and state agency and among programs administered by the same agency. Accordingly, the amounts reported in the federal and state financial reports do not necessarily agree with the amounts reported in the accompanying schedules of expenditures of federal awards and state financial assistance, which are prepared on the basis of accounting explained in Note B.
Title: NOTE G. OTHER REPORTING REQUIREMENTS
Accounting Policies: NOTE C. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESThe accounting policies of the County conform to the accounting principles and practices prescribed by the Division of Local Government Services, Department of Community Affairs, State of New Jersey (the Division). 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 federal awards and state financial assistance through the following accounting practices which differ from those required by accounting principles generally accepted in the United States of America.The County, in accordance with the Divisions directive, fully realizes revenues and charges appropriations when grants are adopted by the governing body in the budget of the Current Fund. The revenues are charged and the receivable accounted for in the Federal and State Grant Fund. Appropriations are charged and the amount allotted for spending is accounted for as an appropriated reserve. Programs within the General Capital Fund and various Trust Funds are accounted for within the equivalent revenue and appropriation (or reserve) accounts for those respective funds. Expenditures are measured from payments charged directly to specific grant programs. Expenditures in the Schedules are measured from payments charged directly to specific grant programs in the underlying accounting records. Federal and state awards provided to sub-recipients are treated as expenditures when paid.Other significant accounting policies are as follows:Local Contributions - Local matching contributions are required by certain federal and state grants. The amount or percentage of matching contributions varies with each program. Local matching contributions are raised in the Current Fund budget.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
Law Enforcement Trust FundThe Hudson County Prosecutors Office submits an annual financial report of the Law Enforcement Trust Fund (the LETF) pursuant to the specific requirements by its oversight federal and state agencies. Included in the LETF are the proceeds of fund sharing from the federal and state agencies that are pooled with forfeitures obtained by the Office of the Prosecutor and local law enforcement agencies. The LETF is included in the Countys Trust Fund.