Title: BASIS OF PRESENTATION
Accounting Policies: Expenditures 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 contained in
the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to
reimbursement. Expenditures for the following programs are recognized based on other unique
requirements:
• Section 8 Housing Choice Voucher Program (HCV): Expenditures are reported on a statutory basis
as required by the U.S. Department of Housing and Urban Development. Such expenditures should equal
the net ACC subsidy for the PHA’s fiscal period.
• Public assistance grants (FEMA): Expenditures are recognized in the period when: (1) FEMA has
approved the PW, and (2) eligible expenditures are incurred.
• Loans or loans guarantee programs: Expenditures equal the value of new loans made or received
during the audit period plus the beginning of the audit period balance of outstanding loans from previous
years for which the federal government imposes continuing compliance requirements. For loans with no
imposed continuing compliance requirements, expenditures are recognized when the related costs
financed with loan proceeds are incurred.
De Minimis Rate Used: N
Rate Explanation: The Municipality has elected not to use the 10-percent de minimis cost rate allowed under the Uniform
Guidance.
The accompanying Schedule of Expenditures of Federal Awards (“the Schedule”) includes the federal grant
activity of the Municipality under programs of the federal government for the year ended June 30, 2023. The
information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal
Regulation (CFR Part 200), Uniform Administrative Requirements, Cost Principles and Audit Requirements
for Federal Awards (“Uniform Guidance”). Therefore, some amounts presented in this schedule may differ
from the amounts presented in, or used in the preparation of, the basic financial statements. Because the
schedule presents only a selected portion of the operations of the Municipality, it is not intended to, and does
not present, the financial position and changes in net position of the Municipality.
Title: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Accounting Policies: Expenditures 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 contained in
the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to
reimbursement. Expenditures for the following programs are recognized based on other unique
requirements:
• Section 8 Housing Choice Voucher Program (HCV): Expenditures are reported on a statutory basis
as required by the U.S. Department of Housing and Urban Development. Such expenditures should equal
the net ACC subsidy for the PHA’s fiscal period.
• Public assistance grants (FEMA): Expenditures are recognized in the period when: (1) FEMA has
approved the PW, and (2) eligible expenditures are incurred.
• Loans or loans guarantee programs: Expenditures equal the value of new loans made or received
during the audit period plus the beginning of the audit period balance of outstanding loans from previous
years for which the federal government imposes continuing compliance requirements. For loans with no
imposed continuing compliance requirements, expenditures are recognized when the related costs
financed with loan proceeds are incurred.
De Minimis Rate Used: N
Rate Explanation: The Municipality has elected not to use the 10-percent de minimis cost rate allowed under the Uniform
Guidance.
Expenditures 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 contained in
the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to
reimbursement. Expenditures for the following programs are recognized based on other unique
requirements:
• Section 8 Housing Choice Voucher Program (HCV): Expenditures are reported on a statutory basis
as required by the U.S. Department of Housing and Urban Development. Such expenditures should equal
the net ACC subsidy for the PHA’s fiscal period.
• Public assistance grants (FEMA): Expenditures are recognized in the period when: (1) FEMA has
approved the PW, and (2) eligible expenditures are incurred.
• Loans or loans guarantee programs: Expenditures equal the value of new loans made or received
during the audit period plus the beginning of the audit period balance of outstanding loans from previous
years for which the federal government imposes continuing compliance requirements. For loans with no
imposed continuing compliance requirements, expenditures are recognized when the related costs
financed with loan proceeds are incurred.
Title: ASSISTANCE LISTING NUMBER
Accounting Policies: Expenditures 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 contained in
the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to
reimbursement. Expenditures for the following programs are recognized based on other unique
requirements:
• Section 8 Housing Choice Voucher Program (HCV): Expenditures are reported on a statutory basis
as required by the U.S. Department of Housing and Urban Development. Such expenditures should equal
the net ACC subsidy for the PHA’s fiscal period.
• Public assistance grants (FEMA): Expenditures are recognized in the period when: (1) FEMA has
approved the PW, and (2) eligible expenditures are incurred.
• Loans or loans guarantee programs: Expenditures equal the value of new loans made or received
during the audit period plus the beginning of the audit period balance of outstanding loans from previous
years for which the federal government imposes continuing compliance requirements. For loans with no
imposed continuing compliance requirements, expenditures are recognized when the related costs
financed with loan proceeds are incurred.
De Minimis Rate Used: N
Rate Explanation: The Municipality has elected not to use the 10-percent de minimis cost rate allowed under the Uniform
Guidance.
The Assistance Listing Number, formerly known as the Catalog of Federal Domestic Assistance (CFDA)
Number, is a five-digit number which is the awarding document for all Federal assistance award
mechanisms, including Federal grants and cooperative agreements. State or local government redistributions
of federal awards to the Municipality, known as “pass–through awards”, should be treated by the
Municipality as though they were received directly from the federal government. The Uniform Guidance
requires the schedule to include the name of the pass–through entity and the identifying number assigned by
the pass-through entity for the federal awards received as a sub recipient. Numbers identified as N/A are not
applicable and numbers identified as N/AV are not available.
Title: INDIRECT COST RATE
Accounting Policies: Expenditures 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 contained in
the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to
reimbursement. Expenditures for the following programs are recognized based on other unique
requirements:
• Section 8 Housing Choice Voucher Program (HCV): Expenditures are reported on a statutory basis
as required by the U.S. Department of Housing and Urban Development. Such expenditures should equal
the net ACC subsidy for the PHA’s fiscal period.
• Public assistance grants (FEMA): Expenditures are recognized in the period when: (1) FEMA has
approved the PW, and (2) eligible expenditures are incurred.
• Loans or loans guarantee programs: Expenditures equal the value of new loans made or received
during the audit period plus the beginning of the audit period balance of outstanding loans from previous
years for which the federal government imposes continuing compliance requirements. For loans with no
imposed continuing compliance requirements, expenditures are recognized when the related costs
financed with loan proceeds are incurred.
De Minimis Rate Used: N
Rate Explanation: The Municipality has elected not to use the 10-percent de minimis cost rate allowed under the Uniform
Guidance.
The Municipality has elected not to use the 10-percent de minimis cost rate allowed under the Uniform
Guidance.
Title: MAJOR PROGRAMS
Accounting Policies: Expenditures 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 contained in
the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to
reimbursement. Expenditures for the following programs are recognized based on other unique
requirements:
• Section 8 Housing Choice Voucher Program (HCV): Expenditures are reported on a statutory basis
as required by the U.S. Department of Housing and Urban Development. Such expenditures should equal
the net ACC subsidy for the PHA’s fiscal period.
• Public assistance grants (FEMA): Expenditures are recognized in the period when: (1) FEMA has
approved the PW, and (2) eligible expenditures are incurred.
• Loans or loans guarantee programs: Expenditures equal the value of new loans made or received
during the audit period plus the beginning of the audit period balance of outstanding loans from previous
years for which the federal government imposes continuing compliance requirements. For loans with no
imposed continuing compliance requirements, expenditures are recognized when the related costs
financed with loan proceeds are incurred.
De Minimis Rate Used: N
Rate Explanation: The Municipality has elected not to use the 10-percent de minimis cost rate allowed under the Uniform
Guidance.
Major programs are identified in the Summary of Auditors’ Results Section of the Schedule of Findings and
Questioned Costs.
Title: SUBRECIPIENTS
Accounting Policies: Expenditures 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 contained in
the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to
reimbursement. Expenditures for the following programs are recognized based on other unique
requirements:
• Section 8 Housing Choice Voucher Program (HCV): Expenditures are reported on a statutory basis
as required by the U.S. Department of Housing and Urban Development. Such expenditures should equal
the net ACC subsidy for the PHA’s fiscal period.
• Public assistance grants (FEMA): Expenditures are recognized in the period when: (1) FEMA has
approved the PW, and (2) eligible expenditures are incurred.
• Loans or loans guarantee programs: Expenditures equal the value of new loans made or received
during the audit period plus the beginning of the audit period balance of outstanding loans from previous
years for which the federal government imposes continuing compliance requirements. For loans with no
imposed continuing compliance requirements, expenditures are recognized when the related costs
financed with loan proceeds are incurred.
De Minimis Rate Used: N
Rate Explanation: The Municipality has elected not to use the 10-percent de minimis cost rate allowed under the Uniform
Guidance.
During fiscal year 2022-2023, there were no awards passed through to sub-recipients.
Title: RECONCILIATION OF EXPENDITURES PRESENTED IN THE SCHEDULE OF
EXPENDITURES OF FEDERAL AWARDS TO THE EXPENDITURES PRESENTED IN THE
BASIC FINANCIAL STATEMENTS
Accounting Policies: Expenditures 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 contained in
the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to
reimbursement. Expenditures for the following programs are recognized based on other unique
requirements:
• Section 8 Housing Choice Voucher Program (HCV): Expenditures are reported on a statutory basis
as required by the U.S. Department of Housing and Urban Development. Such expenditures should equal
the net ACC subsidy for the PHA’s fiscal period.
• Public assistance grants (FEMA): Expenditures are recognized in the period when: (1) FEMA has
approved the PW, and (2) eligible expenditures are incurred.
• Loans or loans guarantee programs: Expenditures equal the value of new loans made or received
during the audit period plus the beginning of the audit period balance of outstanding loans from previous
years for which the federal government imposes continuing compliance requirements. For loans with no
imposed continuing compliance requirements, expenditures are recognized when the related costs
financed with loan proceeds are incurred.
De Minimis Rate Used: N
Rate Explanation: The Municipality has elected not to use the 10-percent de minimis cost rate allowed under the Uniform
Guidance.
The reconciliation between the expenditures in the fund financial statements and the expenditures in the
Schedule of Expenditures of Federal Awards is as follows:
Description Amount
Per Schedule of Expenditures of Federal Awards $ 14,863,449
Nonfederal programs expenditures and other adjustments 14,839,903
Total Expenditures $ 29,703,352
The Municipality receives FEMA reimbursement funds from the Central Office for Recovery,
Reconstruction and Resiliency (COR3). COR3 is a division of the Puerto Rico Public Private Authority
created through Executive Order 2017-65 to manage all efforts for the recovery of the Commonwealth of
Puerto Rico (Commonwealth) after the passage of Hurricanes Irma and María. COR3 was authorized by the
Governor to receive all disaster recovery grants of FEMA.
Title: AMERICAN RESCUE PLAN ACT (ARPA)-ASSISTANCE LISTING 21.027
CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS
Accounting Policies: Expenditures 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 contained in
the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to
reimbursement. Expenditures for the following programs are recognized based on other unique
requirements:
• Section 8 Housing Choice Voucher Program (HCV): Expenditures are reported on a statutory basis
as required by the U.S. Department of Housing and Urban Development. Such expenditures should equal
the net ACC subsidy for the PHA’s fiscal period.
• Public assistance grants (FEMA): Expenditures are recognized in the period when: (1) FEMA has
approved the PW, and (2) eligible expenditures are incurred.
• Loans or loans guarantee programs: Expenditures equal the value of new loans made or received
during the audit period plus the beginning of the audit period balance of outstanding loans from previous
years for which the federal government imposes continuing compliance requirements. For loans with no
imposed continuing compliance requirements, expenditures are recognized when the related costs
financed with loan proceeds are incurred.
De Minimis Rate Used: N
Rate Explanation: The Municipality has elected not to use the 10-percent de minimis cost rate allowed under the Uniform
Guidance.
On March 11, 2021, was signed into law the American Rescue Plan Act (ARPA) of 2021, the latest COVID19 stimulus package. Within ARPA, the Coronavirus State and Local Fiscal Recovery Fund provides $350
billion for states, municipalities, counties, tribes, and territories, including $130.2 billion for local
governments split evenly between municipalities and counties. The Municipality of Toa Alta started
receiving the funds and incurring expenditures on fiscal year 2021-2022.