Title: REPORTING ENTITY
Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, 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.
De Minimis Rate Used: N
Rate Explanation: The Municipality has elected not to use the 10 percent de minimis indirect cost rate, instead is using approximately 4% of one of the grants under Head Start; the total expenditure included in the SEFA as Head Start program includes $47,980 of Indirect Costs.
The Autonomous Municipality of Caguas of the Commonwealth of Puerto Rico (Municipality) was founded in 1775 and operates as a governmental unit of the Commonwealth of Puerto Rico under the Law No. 81 of August 30, 1991, known as the “Autonomous Municipalities Laws of the Commonwealth of Puerto Rico”. It is governed by a Mayor and a 16-member Municipal Legislature elected for a four-year term.
Title: BASIS OF PRESENTATION
Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, 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.
De Minimis Rate Used: N
Rate Explanation: The Municipality has elected not to use the 10 percent de minimis indirect cost rate, instead is using approximately 4% of one of the grants under Head Start; the total expenditure included in the SEFA as Head Start program includes $47,980 of Indirect Costs.
The accompanying Schedule of Expenditures of Federal Awards (Schedule) includes the federal award activities of the Autonomous Municipality of Caguas of the Commonwealth of Puerto Rico (Municipality) under programs of the Federal government for the fiscal year ended June 30, 2024. 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: SCHEDULE NOT IN AGREEMENT WITH OTHER FEDERAL AWARD REPORTING
Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, 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.
De Minimis Rate Used: N
Rate Explanation: The Municipality has elected not to use the 10 percent de minimis indirect cost rate, instead is using approximately 4% of one of the grants under Head Start; the total expenditure included in the SEFA as Head Start program includes $47,980 of Indirect Costs.
The information included in the Schedule may not fully agree with other Federal award reports submitted directly to federal granting agencies.
Title: ASSISTANCE LISTING NUMBER
Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, 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.
De Minimis Rate Used: N
Rate Explanation: The Municipality has elected not to use the 10 percent de minimis indirect cost rate, instead is using approximately 4% of one of the grants under Head Start; the total expenditure included in the SEFA as Head Start program includes $47,980 of Indirect Costs.
The Assistance Listing Number, formerly known as the Catalog of Federal Domestic Assistance (CFDA) Number, is a five-digit number assigned in the awarding document for all Federal assistance award mechanisms, including Federal grants and cooperative agreements.
Title: RELATIONSHIP TO STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE – GOVERNMENTAL FUND
Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, 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.
De Minimis Rate Used: N
Rate Explanation: The Municipality has elected not to use the 10 percent de minimis indirect cost rate, instead is using approximately 4% of one of the grants under Head Start; the total expenditure included in the SEFA as Head Start program includes $47,980 of Indirect Costs.
Expenditures of federal awards are reported in the Municipality’s Statement of Revenues, Expenditures and Changes in Fund Balances – Governmental Fund as follows: General Fund - $767,011, Capital Projects Fund – $2,177,271, Health and Human Services Fund – $22,670,063, Social and Welfare Activities Fund – $31,453,466 and Other Governmental Funds $24,619,751.
The amount of $531,607 was included as expenditure in the SEFA, under the program Economic Adjustment Assistance (11.307) that are not expenditure. In accordance with program regulation, the amount of expenditure to be reported in the SEFA, should consider the principal loan balance outstanding at year end ($331,907), plus any cash balance available for loan purposes ($199,700), and finally, any administrative expenditures incurred during the fiscal year, if any.
The Municipality receives FEMA reimbursement funds from the Central Recovery and Reconstruction Office of Puerto Rico (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. During fiscal year 2023-2024, COR3 approved projects under the ALN 97.036, related to Hurricane Fiona. The amount of $5,498,211 was recognized in the SEFA, which are related to expenditures incurred in prior year and the project worksheet was approved and received during this current year.
The Municipality received grants under the Community Development Block Grants/State’s Program and Non-Entitlement Grants in Hawaii – CDBG-DR, from the Puerto Rico Housing Department (PRHD). In accordance with the program regulation, these funds are the matching portion for allowable costs incurred for projects approved by the PRHD, related to the Disaster Grants – Public Assistance (Presidentially Declared Disasters) expenditures.