Got a monorepo where I want to use some default tsconfig settings.

My current attempt looks like

tsconfig.base.json

{
  "compilerOptions": {
    // Target ECMAScript version (es6, es7, etc.)
    "target": "es6",
    
    // Output module type (commonjs, es2015, etc.)
    // When targeting Node.js or a server-side environment, set to 'commonjs' for compatibility.
    // For modern web browsers, consider setting to one of the newer module systems like ES2015/ESNext.
    "module": "commonjs",

    // Enables source map generation: helps debugging by mapping compiled JavaScript to original TypeScript code
    "sourceMap": true,

    // Generate *.d.ts files that contain the type definitions for your project
    "declaration": true,
    // Enables declaration map generation: maps generated .d.ts files back to their original TypeScript source files
    "declarationMap": true,
    
    // Enables all strict modes, like no implicit any, to functions without return types, and more.
    "strict": true,
    
    // Allows ES6 modules to be imported as CommonJS modules
    "esModuleInterop": true,
    
    // Allows synthetic default imports from non-Babel code
    "allowSyntheticDefaultImports": true,
    
    // Avoids TypeScript from looking into node_modules when checking types, improving performance.
    "skipLibCheck": true,
  },
  
  "exclude": ["**/node_modules/**/*"] // Avoids TypeScript from looking into node_modules when checking types, improving performance.
}

app/tsconfig.json

{
  "extends": "../tsconfig.base.json",
  "compilerOptions": {
    "baseUrl": "."
  }
}

functions/tsconfig.json

{
  "extends": "../tsconfig.base.json",
  "compilerOptions": {
    "target": "es2017",
    "sourceMap": false,

    "outDir": "lib"
  },
  "compileOnSave": true,
  "include": ["src/**/*", "scripts/utils.ts"],
  "exclude": ["node_modules", "lib"]
}

Is this the correct way?

(do I need to set root in each of the dirs as well?)