Authority:
GASB Codification Section G60
AICPA Audits of State and Local Governmental Units Audit and Account
Guide,Chapter 22, (para. 22.09-22.11)

Effective Date:
7/1/95

References:
See Financial Reporting for Certain Grants and Other Financial Assistance.

Policy:
Most federal assistance takes the form of cash awards; however, there are a few programs in which cash is not involved. For the State of North Carolina, surplus commodities and surplus federal property are the most significant noncash federal assistance. The value of this assistance, as specified by the relevant federal agency, is reported to OSC by the various state agencies that have custody of the goods. The reported values are incorporated in the Schedule of Federal Financial Assistance prepared by OSC every year.

Except for food stamps, the value of surplus commodities provided by the federal government for distribution to designated segments of the general population should not appear on the CAFRs balance sheets or operating statements. The reported values are disclosed in the notes to the financial statements as a contingent liability.

Food stamps, for which the State has custodial responsibility, are reported in the financial statements in accordance with GASB Statement 24.