Notes to SEFA
Title: Relationship To General Purpose Financial Statements
Accounting Policies: The accompanying schedule of federal awards presents the activity of all federal programs of the Township of Ewing, County of Mercer, State of New Jersey (the Township). The Township is defined in Note A to the Townships financial statements regulatory basis. The Township is the prime sponsor and recipient of various federal and state grant funds. The Township has delegated the administration of grant programs and the reporting function to various departments within the Township. Substantially all grant and program cash funds are commingled with the Townships other funds, although each grant is accounted for separately within the Townships financial records.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
Amounts reported in the accompanying schedule agree with amounts reported in the Townships basic financial statements regulatory basis. Financial assistance revenues and expenditures are reported in the Townships basic financial statements on the basis of accounting prescribed by the Division of Local Government Services, Department of Community Affairs, State of New Jersey.
Title: Relationship To Federal Financial Reports
Accounting Policies: The accompanying schedule of federal awards presents the activity of all federal programs of the Township of Ewing, County of Mercer, State of New Jersey (the Township). The Township is defined in Note A to the Townships financial statements regulatory basis. The Township is the prime sponsor and recipient of various federal and state grant funds. The Township has delegated the administration of grant programs and the reporting function to various departments within the Township. Substantially all grant and program cash funds are commingled with the Townships other funds, although each grant is accounted for separately within the Townships financial records.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
Amounts reported in the accompanying schedule agree with the amounts reported in the related federal and state financial reports.
Title: Basis of Accounting
Accounting Policies: The accompanying schedule of federal awards presents the activity of all federal programs of the Township of Ewing, County of Mercer, State of New Jersey (the Township). The Township is defined in Note A to the Townships financial statements regulatory basis. The Township is the prime sponsor and recipient of various federal and state grant funds. The Township has delegated the administration of grant programs and the reporting function to various departments within the Township. Substantially all grant and program cash funds are commingled with the Townships other funds, although each grant is accounted for separately within the Townships financial records.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The accompanying schedule of federal awards is presented using the modified accrual basis of accounting in accordance with the Requirements of Audit as promulgated by the Division of Local Government Services, Department of Community Affairs, State of New Jersey. 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 Township 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).Modifications to the accrual basis:a. Expenditures are recorded on the schedules of expenditures of federal awards and state financial assistance when encumbered.b. Prepaid expenditures are not recorded.c. Obligations for employees vested vacation and sick leave are recorded when paid.d. Grant revenues are recorded when anticipated in the budget.e. Property and equipment
Title: Commitments and Contingencies
Accounting Policies: The accompanying schedule of federal awards presents the activity of all federal programs of the Township of Ewing, County of Mercer, State of New Jersey (the Township). The Township is defined in Note A to the Townships financial statements regulatory basis. The Township is the prime sponsor and recipient of various federal and state grant funds. The Township has delegated the administration of grant programs and the reporting function to various departments within the Township. Substantially all grant and program cash funds are commingled with the Townships other funds, although each grant is accounted for separately within the Townships financial records.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
Each of the grantor agencies reserves the right to conduct additional audits of the Townships grant programs for economy, efficiency and program results. However, the Township management does not believe such audits would result in material amounts of disallowed costs.The Township has entered into various contracts with contractors to perform services or provide goods in the effort to administer such grants. Thus, the Township has commitments to meet various conditions of such contracts.