Title: Note 1 - Basis of presentation
Accounting Policies: Summary of significant accounting policies:
a. The Schedule is prepared from the Revolving Fund’s accounting records. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures may or may not be available or may be limited as to reimbursement.
b. The financial transactions are recorded by the Revolving Fund in accordance with the terms and conditions of the grants, which are consistent with accounting principles generally accepted in the United States of America.
c. Expenditures are recognized in the accounting period in which the liability is incurred, if measurable, or when paid, whichever occurs first.
d. The Revolving Fund has elected not to use the 10-percent de minimis indirect costs rate as allowed under the Uniform Guidance.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate. The Revolving Fund has elected not to use the 10-percent de minimis indirect costs rate as
allowed under the Uniform Guidance.
The accompanying supplementary Schedule of Expenditures of Federal Awards (the Schedule) includes the federal grant activity of Puerto Rico Safe Drinking Water Treatment Revolving Loan Fund (“the Revolving Fund”) and is presented on the accrual basis of accounting. The information in the Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, some amounts presented in the Schedule may differ from amounts presented in, or used in the preparation of, the Revolving Fund’s financial statements.
Because the Schedule presents only a selected portion of the activities of the Revolving Fund, it is not intended to, and does not present the net position, changes in net position, and cash flows of the Revolving Fund.
Title: Note 2 - Summary of significant accounting policies
Accounting Policies: Summary of significant accounting policies:
a. The Schedule is prepared from the Revolving Fund’s accounting records. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures may or may not be available or may be limited as to reimbursement.
b. The financial transactions are recorded by the Revolving Fund in accordance with the terms and conditions of the grants, which are consistent with accounting principles generally accepted in the United States of America.
c. Expenditures are recognized in the accounting period in which the liability is incurred, if measurable, or when paid, whichever occurs first.
d. The Revolving Fund has elected not to use the 10-percent de minimis indirect costs rate as allowed under the Uniform Guidance.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate. The Revolving Fund has elected not to use the 10-percent de minimis indirect costs rate as
allowed under the Uniform Guidance.
a. The Schedule is prepared from the Revolving Fund’s accounting records. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures may or may not be available or may be limited as to reimbursement.
b. The financial transactions are recorded by the Revolving Fund in accordance with the terms and conditions of the grants, which are consistent with accounting principles generally accepted in the United States of America.
c. Expenditures are recognized in the accounting period in which the liability is incurred, if measurable, or when paid, whichever occurs first.
d. The Revolving Fund has elected not to use the 10-percent de minimis indirect costs rate as allowed under the Uniform Guidance.
Title: Note 3 - Assistance Listing Numbers (ALN)
Accounting Policies: Summary of significant accounting policies:
a. The Schedule is prepared from the Revolving Fund’s accounting records. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures may or may not be available or may be limited as to reimbursement.
b. The financial transactions are recorded by the Revolving Fund in accordance with the terms and conditions of the grants, which are consistent with accounting principles generally accepted in the United States of America.
c. Expenditures are recognized in the accounting period in which the liability is incurred, if measurable, or when paid, whichever occurs first.
d. The Revolving Fund has elected not to use the 10-percent de minimis indirect costs rate as allowed under the Uniform Guidance.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate. The Revolving Fund has elected not to use the 10-percent de minimis indirect costs rate as
allowed under the Uniform Guidance.
The Assistance Listing numbers (ALN) included in the Schedule are determined based on the
program name, review of grant contract information and the public descriptions of federal
assistance listings published by the U.S. Government on sam.gov.
Title: Note 4 - Capitalization grants
Accounting Policies: Summary of significant accounting policies:
a. The Schedule is prepared from the Revolving Fund’s accounting records. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures may or may not be available or may be limited as to reimbursement.
b. The financial transactions are recorded by the Revolving Fund in accordance with the terms and conditions of the grants, which are consistent with accounting principles generally accepted in the United States of America.
c. Expenditures are recognized in the accounting period in which the liability is incurred, if measurable, or when paid, whichever occurs first.
d. The Revolving Fund has elected not to use the 10-percent de minimis indirect costs rate as allowed under the Uniform Guidance.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate. The Revolving Fund has elected not to use the 10-percent de minimis indirect costs rate as
allowed under the Uniform Guidance.
During the year ended June 30, 2023, grants and loans disbursed to subrecipient amounted to
$8,882,530, of which $6,521,786 were received from the U.S. Environmental Protection Agency
(EPA), and $2,360,744 were disbursed from the state match and loan repayment funds.
Grants are not subject to loan or interest charges. The balance of loans previously granted amounting
to $183,031,216 is not included in the schedule since the Revolving Fund is not deemed to have
continuing compliance with requirements.
Title: Note 5 - Reconciliation of the Schedule with the statement of revenues, expenses and changes in net position
Accounting Policies: Summary of significant accounting policies:
a. The Schedule is prepared from the Revolving Fund’s accounting records. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures may or may not be available or may be limited as to reimbursement.
b. The financial transactions are recorded by the Revolving Fund in accordance with the terms and conditions of the grants, which are consistent with accounting principles generally accepted in the United States of America.
c. Expenditures are recognized in the accounting period in which the liability is incurred, if measurable, or when paid, whichever occurs first.
d. The Revolving Fund has elected not to use the 10-percent de minimis indirect costs rate as allowed under the Uniform Guidance.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate. The Revolving Fund has elected not to use the 10-percent de minimis indirect costs rate as
allowed under the Uniform Guidance.
The following presents a reconciliation between the Schedule with the contributions received from
the EPA as presented in the statement of revenues, expenses and changes in net position:
For the year ended on June 30, 2023: Amount
Expenditures per Schedule of Expenditures of Federal Awards $ 7,243,118
Add: expenditures incurred in prior years but claimed for
reimbursement during the year ended on June 30, 2023 181,478
Less: expenditures incurred during the year ended June 30, 2023
that have not been claimed for reimbursement to the EPA (338,982)
Contributions from EPA per statement of revenues, expenses
and changes in net position $ 7,085,614