Title: LATENESS OF SINGLE AUDIT REPORTING PACKAGE
Accounting Policies: A. BASIS OF PRESENTATIONThe accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of theMunicipality under programs of the federal government for the year ended June 30, 2022. The informationin this schedule is presented in accordance with the requirements of Title 2 U.S. Code of FederalRegulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirementsfor Federal Awards (Uniform Guidance). Therefore, some amounts presented in this schedule may differfrom the amounts presented in, or used in the preparation of, the basic financial statements. Becausethe schedule presents only a selected portion of the operations of the Municipality, it is not intended toand does not present the financial position and changes in net position of the Municipality.B. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESExpenditures reported on the Schedule are reported on the modified accrual basis of accounting.Expenditures are recognized when the related liability is incurred, following the cost principles containedin the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as toreimbursement. Expenditures for the following programs are recognized based on other uniquerequirements:? Section 8 Housing Choice Voucher Program (HCV). Expenditures are reported on a statutory basisas required by the U.S. Department of Housing and Urban Development. Such expenditures shouldequal the net ACC subsidy for the PHAs fiscal period.? Public assistance grants (FEMA). Expenditures are recognized in the period when: (1) FEMA hasapproved the PW, and (2) eligible expenditures are incurred.? Loans or loans guarantee programs. Expenditures equal the value of new loans made or receivedduring the audit period plus the beginning of the audit period balance of outstanding loans fromprevious years for which the federal government imposes continuing compliance requirements. Forloans with no imposed continuing compliance requirements, expenditures are recognized when therelated costs financed with loan proceeds are incurred.C. ASSISTANCE LISTING NUMBER AND PASS-THROUGH ENTITY IDENTIFYING NUMBERThe Assistance Listing Number (ALN), formerly known as the Catalog of Federal Domestic Assistance(CFDA) Number, is a five-digit number assigned in the awarding document for all federal assistanceaward mechanisms, including federal grants and cooperative agreements. Assistance listings aredetailed public descriptions of federal programs that provide grants, loans, scholarships, insurance, andother types of assistance awards. The Sam.gov assistance listing is the publicly available onlinedatabase showing all available Federally funded programs.State or local government redistributions of federal awards to the Municipality, known as passthroughawards, should be treated by the Municipality as though they were received directly from the federalgovernment. The Uniform Guidance requires the schedule to include the name of the passthrough entityand the identifying number assigned by the pass-through entity for the federal awards received as a subrecipient. Numbers identified as N/A are not applicable and numbers identified as N/AV are not available.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The Single Audit reporting package, as defined and required in 2 CFR 200 for the fiscal year ended June30, 2022, could not be submitted in a timely manner. From 2017 to the present, Puerto Rico has sufferedfour consecutive emergencies caused by nature and health situations: Hurricane Maria, Earthquakes,COVID-19, and Hurricane Fiona. The Municipality of Rio Grande has carried out emergency work andtaken into consideration the waivers issued by the OMB, resulting in delays of the administrative workfor the fiscal year 2021-2022.
Title: COMMUNITY DISASTER LOAN (ALN 97.030)
Accounting Policies: A. BASIS OF PRESENTATIONThe accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of theMunicipality under programs of the federal government for the year ended June 30, 2022. The informationin this schedule is presented in accordance with the requirements of Title 2 U.S. Code of FederalRegulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirementsfor Federal Awards (Uniform Guidance). Therefore, some amounts presented in this schedule may differfrom the amounts presented in, or used in the preparation of, the basic financial statements. Becausethe schedule presents only a selected portion of the operations of the Municipality, it is not intended toand does not present the financial position and changes in net position of the Municipality.B. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESExpenditures reported on the Schedule are reported on the modified accrual basis of accounting.Expenditures are recognized when the related liability is incurred, following the cost principles containedin the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as toreimbursement. Expenditures for the following programs are recognized based on other uniquerequirements:? Section 8 Housing Choice Voucher Program (HCV). Expenditures are reported on a statutory basisas required by the U.S. Department of Housing and Urban Development. Such expenditures shouldequal the net ACC subsidy for the PHAs fiscal period.? Public assistance grants (FEMA). Expenditures are recognized in the period when: (1) FEMA hasapproved the PW, and (2) eligible expenditures are incurred.? Loans or loans guarantee programs. Expenditures equal the value of new loans made or receivedduring the audit period plus the beginning of the audit period balance of outstanding loans fromprevious years for which the federal government imposes continuing compliance requirements. Forloans with no imposed continuing compliance requirements, expenditures are recognized when therelated costs financed with loan proceeds are incurred.C. ASSISTANCE LISTING NUMBER AND PASS-THROUGH ENTITY IDENTIFYING NUMBERThe Assistance Listing Number (ALN), formerly known as the Catalog of Federal Domestic Assistance(CFDA) Number, is a five-digit number assigned in the awarding document for all federal assistanceaward mechanisms, including federal grants and cooperative agreements. Assistance listings aredetailed public descriptions of federal programs that provide grants, loans, scholarships, insurance, andother types of assistance awards. The Sam.gov assistance listing is the publicly available onlinedatabase showing all available Federally funded programs.State or local government redistributions of federal awards to the Municipality, known as passthroughawards, should be treated by the Municipality as though they were received directly from the federalgovernment. The Uniform Guidance requires the schedule to include the name of the passthrough entityand the identifying number assigned by the pass-through entity for the federal awards received as a subrecipient. Numbers identified as N/A are not applicable and numbers identified as N/AV are not available.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The loan is a Community Disaster Loan awarded by FEMA with a total issue of $4,656,411 million at2.625%. This note provides operational funding for local governments to continue to operate after asubstantial revenue loss caused by a disaster. The normal repayment term of a CDL is five years, wherethe full principal and accumulated interest are due all together at the end of the five-year term on whateveramount is not cancelled. In accordance with the Extending Government Funding and DeliveringEmergency Assistance Act (P.L. 117-43) approved by the United States Congress, the outstandingbalance of principal and interest accrued of the referenced CDL as of September 30, 2021, wascancelled.
Title: CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS (ALN 21.027)
Accounting Policies: A. BASIS OF PRESENTATIONThe accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of theMunicipality under programs of the federal government for the year ended June 30, 2022. The informationin this schedule is presented in accordance with the requirements of Title 2 U.S. Code of FederalRegulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirementsfor Federal Awards (Uniform Guidance). Therefore, some amounts presented in this schedule may differfrom the amounts presented in, or used in the preparation of, the basic financial statements. Becausethe schedule presents only a selected portion of the operations of the Municipality, it is not intended toand does not present the financial position and changes in net position of the Municipality.B. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESExpenditures reported on the Schedule are reported on the modified accrual basis of accounting.Expenditures are recognized when the related liability is incurred, following the cost principles containedin the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as toreimbursement. Expenditures for the following programs are recognized based on other uniquerequirements:? Section 8 Housing Choice Voucher Program (HCV). Expenditures are reported on a statutory basisas required by the U.S. Department of Housing and Urban Development. Such expenditures shouldequal the net ACC subsidy for the PHAs fiscal period.? Public assistance grants (FEMA). Expenditures are recognized in the period when: (1) FEMA hasapproved the PW, and (2) eligible expenditures are incurred.? Loans or loans guarantee programs. Expenditures equal the value of new loans made or receivedduring the audit period plus the beginning of the audit period balance of outstanding loans fromprevious years for which the federal government imposes continuing compliance requirements. Forloans with no imposed continuing compliance requirements, expenditures are recognized when therelated costs financed with loan proceeds are incurred.C. ASSISTANCE LISTING NUMBER AND PASS-THROUGH ENTITY IDENTIFYING NUMBERThe Assistance Listing Number (ALN), formerly known as the Catalog of Federal Domestic Assistance(CFDA) Number, is a five-digit number assigned in the awarding document for all federal assistanceaward mechanisms, including federal grants and cooperative agreements. Assistance listings aredetailed public descriptions of federal programs that provide grants, loans, scholarships, insurance, andother types of assistance awards. The Sam.gov assistance listing is the publicly available onlinedatabase showing all available Federally funded programs.State or local government redistributions of federal awards to the Municipality, known as passthroughawards, should be treated by the Municipality as though they were received directly from the federalgovernment. The Uniform Guidance requires the schedule to include the name of the passthrough entityand the identifying number assigned by the pass-through entity for the federal awards received as a subrecipient. Numbers identified as N/A are not applicable and numbers identified as N/AV are not available.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
On March 11, 2021, was signed into law the American Rescue Plan Act (ARPA) of 2021, the latestCOVID-19 stimulus package. Within ARPA, the Coronavirus State and Local Fiscal Recovery Fundprovides $350 billion for states, municipalities, counties, tribes, and territories, including $130.2 billion forlocal governments split evenly between municipalities and counties. Accordingly, the Municipalityreceived a grant under Counties and Non-Entitlements categories of $26.8 million to respond to theCOVID-19 public health emergency and its economic impacts. The Municipality will incur ARPA grantexpenditures in the following fiscal years.