Notes to SEFA
Accounting Policies: 1. General The accompanying schedules of expenditures of federal awards and state financial assistance present the activityofall of all federal awards and state financial assistance programs of the District. The Board of Education is defined in Note1 tothe boards basic financial statements. All federal awards and state financial assistance received directly from federaland stateagencies, as well as federal awards and state financial assistance passed through other government agencies, areincluded onthe schedules of expenditures of federal awards and state financial assistance.2. Basis of Accounting Theaccompanyingschedules of expenditures of federal awards and state financial assistance are presented on the budgetarybasis of accountingwith the exception of programs recorded in the enterprise funds, which are presented using the accrualbasis of accounting andthose recorded in the special revenue fund, which are presented using the budgetary basis ofaccounting. These basis ofaccounting are described in Note 1 to the District's basic financial statements. The information in these schedules are presentedin accordance with the requirements of 2 CFR 200Uniform Administrative Requirements, Cost Principles, and AuditRequirements for Federal Awards and New Jersey OMB Circular 1508, Single Audit Policy for Recipients of Federal Grants, StateGrants and State Aid. Therefore, some amounts presented in this schedule may differ from amounts presented, or used in thepreparation of, the basic financial statements.3. Relationship to Basic Financial Statements Amounts reported in theaccompanying schedules agree with amounts reported in the Districts basic financial statements. The basic financial statementspresent the general fund and special revenue fund on a GAAP basis. Budgetary comparison statements or schedules (RSI) arepresented for the general fund and special revenue fund to demonstrate finance related legal compliance in which certainrevenue is permitted by law or grant agreement to be recognized in the fiscal year, whereas for GAAP reporting, revenue is notrecognized until the subsequent year or when expenditures have been made.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.