Title: 1. BASIS OF PRESENTATION
Accounting Policies: ACCRUAL BASIS
De Minimis Rate Used: N
Rate Explanation: NO COMMENT
The accompanying Schedule of Expenditures of Federal Awards (Schedule) includes the federal award activities of the Autonomous Municipality of Aguadilla of the Commonwealth of Puerto Rico (Municipality) under programs of the Federal government for the fiscal 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 Regulations Part 200, (Uniform Guidance). 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, changes in net position, or cash flows of the Municipality.
Title: 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Accounting Policies: ACCRUAL BASIS
De Minimis Rate Used: N
Rate Explanation: NO COMMENT
A. Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in OMB Circular A-87, Cost Principles for State and Local Government or those contained in the Uniform Guidance, as applicable, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
B. Negative amounts, if any, shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years.
C. Pass-through entity identifying numbers are presented where available.
D. The Municipality has not elected to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance.
Title: 3. SCHEDULE NOT IN AGREEMENT WITH OTHER FEDERAL AWARD REPORTING
Accounting Policies: ACCRUAL BASIS
De Minimis Rate Used: N
Rate Explanation: NO COMMENT
The information included in the Schedule may not fully agree with other federal award reports submitted directly to federal granting agencies.
Title: 4. ASSISTANCE LISTING NUMBER
Accounting Policies: ACCRUAL BASIS
De Minimis Rate Used: N
Rate Explanation: NO COMMENT
The ALN, Assistance listing numbers included in this Schedule are determined based on the program name, review of grant contract information and the Office of Management and Budget's Catalogue of Federal Domestic Assistance.
Title: 5. RELATIONSHIP TO THE FINANCIAL STATEMENTS
Accounting Policies: ACCRUAL BASIS
De Minimis Rate Used: N
Rate Explanation: NO COMMENT
Expenditures of federal awards are reported in the Municipality’s Statement of Revenues, Expenditures and Changes in Fund Balances – Governmental Funds as follows: American Rescue Plan Act Fund– $9,009,246, Construction of Municipal Facilities Fund $59,495 and Other Governmental Funds (Including Transfer Out) – $12,138,771. OUTSTANDING LOANS OF FEDERAL FUNDS
Federal funded loans provided under these programs are included as expenditure on the Schedule of Expenditure of Federal Awards. Per Uniform Guidance, loans proceed that were received and expended in prior years are not considered federal awards expended (and thus not shown on the Schedule of Expenditures of Federal Awards) as those loans do not include continuing compliance requirements other than repayment of the loans. The Municipality is required to identify in the notes to the Schedule of Expenditures of Federal Awards the balances outstanding at the end of the period. On June 30, 2023, there are not outstanding Loans for Federal Funds.
Title: 6. GENERALLY ACCEPTED GOVERNMENTAL AUDIT STANDARD (GAGAS 2018 REVISION)
Accounting Policies: ACCRUAL BASIS
De Minimis Rate Used: N
Rate Explanation: NO COMMENT
The Yellow Book is used by auditors of government entities, entities that receive government awards, and other audit organizations performing Yellow Book audits. It outlines the requirements for audit reports, professional qualifications for auditors, and audit organization quality control. Auditors of federal, state, and local government programs use these standards to perform their audits and produce their reports.