Title: Basis of Presentation
Accounting Policies: Expenditures included on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized at the time the service was received, following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited to reimbursement.
De Minimis Rate Used: N
Rate Explanation: Not applicable; per agreement, indirect (F&A) costs were covered by local state, Puerto Rico Department of Education.
The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal grant activities of the Puerto Rico Infrastructure Financing Authority (the Authority), a Component Unit of the Commonwealth of Puerto Rico (the Commonwealth), under programs of the federal government, for the year ended June 30, 2022. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (“Uniform Guidance”). Because the Schedule presents only a selected portion of the operations of the Authority, it is not intended to and does not present the financial position and changes in financial position of the Authority. Therefore, some amounts presented in this Schedule may differ from amounts presented in or used in the preparation of the basic financial statements. All federal agencies as well as federal awards passed through from other local government agencies are included in the Schedule.
In response to the COVID-19 pandemic, the United States Congress passed the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”), which was subsequently signed into law by former President Donald J. Trump. As part of the CARES Act, the Authority received assistance through the Coronavirus Relief Fund (“CFR”). The CFR funds cover expenditures incurred due to COVID-19 during the period between March 1, 2020, and December 31, 2021.
Title: Summary of Significant Accounting Policies
Accounting Policies: Expenditures included on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized at the time the service was received, following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited to reimbursement.
De Minimis Rate Used: N
Rate Explanation: Not applicable; per agreement, indirect (F&A) costs were covered by local state, Puerto Rico Department of Education.
Expenditures included on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized at the time the service was received, following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited to reimbursement.
Title: Assistance Listing Number
Accounting Policies: Expenditures included on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized at the time the service was received, following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited to reimbursement.
De Minimis Rate Used: N
Rate Explanation: Not applicable; per agreement, indirect (F&A) costs were covered by local state, Puerto Rico Department of Education.
The Assistance Listing Number (ALN), formerly known as Catalog of Federal Domestic Assistance (CFDA) Numbers is a program identification number. The first two digits identify the federal department or agency that administers the program, and the last three numbers are assigned by numerical sequence.
Title: Program Costs
Accounting Policies: Expenditures included on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized at the time the service was received, following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited to reimbursement.
De Minimis Rate Used: N
Rate Explanation: Not applicable; per agreement, indirect (F&A) costs were covered by local state, Puerto Rico Department of Education.
The amounts shown as current year federal expenses represent only the federal grant portion of the program costs.
Title: Submission of Single Audit Reporting Package
Accounting Policies: Expenditures included on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized at the time the service was received, following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited to reimbursement.
De Minimis Rate Used: N
Rate Explanation: Not applicable; per agreement, indirect (F&A) costs were covered by local state, Puerto Rico Department of Education.
The Single Audit reporting package, as defined and required in the 2 CFR 200 for fiscal year ended June 30, 2021, was not submitted on March 31, 2022, because of the effects of the Novel Coronavirus COVID-19.
The Compliance Supplement Addendum released in December of 2020 on page 117 states: “Due to the large size of the COVID-19 programs and the federal government dependency on single audit reports to assist with proper oversight over these funds, we strongly encourage the auditees and auditors to complete and submit their relevant portions of single audit reporting packages for fiscal year ends, subject to the provisions of the extension described herein, as early as possible prior to the normal due dates of the earlier of thirty days after the receipt of the auditor’s reports or nine months after the fiscal year end date. In light of the late issuance of audit guidance for the COVID-19 programs contained in this addendum, awarding agencies, in their capacity as cognizant or oversight agencies for audit, must allow recipients and subrecipients that received COVID-19 funding with original due dates from October 1, 2020, through June 30, 2022, an extension for up to three (3) months beyond the normal due date in the completion and submission of the Single Audit reporting package. No further action by awarding agencies is required to enact this extension”. Accordingly, the Authority did not comply with the submission of the Single Audit at the date established in the extensions.
Further, on March 19, 2021, the OMB issued the M-21-20, stated that: “Awarding agencies, in their capacity as cognizant or oversight agencies for audit, should allow recipients and subrecipients that have not yet filed their single audits with the Federal Audit Clearinghouse as of the date of the issuance of this memorandum that have fiscal year-ends through June 30, 2022, to delay the completion and submission of the Single Audit reporting package, as required under Subpart F of 2 CFR § 200.501 to six months beyond the normal due date. No further action by awarding agencies is required to enact this extension. This extension does not require individual recipients and subrecipients to seek approval for the extension by the cognizant or oversight agency for audit; however, recipients and subrecipients should maintain documentation of the reason for the delayed filing. Recipients and subrecipients taking advantage of this extension would still qualify as a "low-risk auditee" under the criteria of 2 CFR § 200.520(a) and (2 CFR § 200.501)”.