BOROUGH OF SOMERVILLE

The accompanying schedule of expenditures of federal awards present the activity of all federal programs of the Borough of Somerville. The Borough of Somerville is defined in Note 1(A) to the financial statements. All federal awards received directly from federal agencies, as well as federal awards passed through other government agencies is included on the schedule of expenditures of federal awards.

The accompanying schedule of expenditures of federal awards is presented using the modified accrual basis of accounting as prescribed by the Division of Local Government Services, Department of Community Affairs, State of New Jersey (OCBOA), which differ in certain respects from generally accepted accounting principles (GAAP) applicable to local government units and as detailed in the Notes to the Financial Statements. The federal award expended amounts included in the expenditure schedule does not reflect amounts encumbered, which encumbered amounts are considered as expended as reported in the NJ OCBOA financial statements. In addition, the Borough has elected not to use the 10 percent de minimus indirect cost rate under the Uniform Guidance and has not charged any indirect costs to its funded programs.

Unless specifically noted, the amounts reported in the accompanying schedules agree with amounts reported in the Borough of Somerville’s financial statements.

Unless specifically required, the amounts reported in the accompanying schedules agree with the amounts reported in the related federal financial reports, where required.

The federal and state loans outstanding at December 31, 2021, which are not required to reported on the schedule of expenditures of federal awards, are as follows:

Loan Program	Total
State of New Jersey EIT – IBank	$3,386,039.65