Borough of Somerville - Notes to Schedules of Expenditures

NOTE 1:

GENERAL

The accompanying schedule of expenditures of federal awards and state financial assistance present the activity of all federal award and state financial assistance programs of the Borough of Somerville. The Borough of Somerville is defined in Note 1(A) to the financial statements. To the extent identified, the federal awards and state financial assistance that passed through

NOTE 2:

BASIS OF ACCOUNTING

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.

NOTE 3:

RELATIONSHIP TO REGULATORY BASIS FINANCIAL STATEMENTS

Amounts reported in the accompanying schedules agree with amounts reported in the Borough’s financial statements.

NOTE 4:

RELATIONSHIP TO FEDERAL AND STATE FINANCIAL REPORTS

Amounts reported in the accompanying schedules of expenditures of federal awards and state financial assistance agree with the amounts reported in the related federal and state financial reports, where required.

NOTE 5:

INDIRECT COST RATE

The Borough has elected not to use the ten percent de minimis indirect cost rate as allowed by the Uniform Guidance and New Jersey OMB Circular Letter 15-08.

NOTE 6:

FEDERAL AND STATE LOANS OUTSTANDING

The federal and state loans outstanding at December 31, 2022, which are not required to be reported on the schedule of expenditures of federal awards and schedule of expenditures of state financial assistance, are as follows:

Loan Program	Total
State of New Jersey EIT – IBank	$2,607,135.52