Title: BASIS OF PRESENTATION
Accounting Policies: Expenditures reported on the Schedule are reported using the 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.
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate
The accompanying Schedule of Expenditures of Federal Awards (the "Schedule") includes the federal award
activity of the Local Redevelopment Authority of the Lands and Facilities of Naval Station Roosevelt Roads
(the Authority) for the year ended June 30, 2021. The information in this 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). Because the
Schedule presents only a selected portion of the operations of the Authority, it is not intended to and does not
present the financial position, changes in net position, or cash flows of the Authority.
Title: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Accounting Policies: Expenditures reported on the Schedule are reported using the 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.
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate
Expenditures reported on the Schedule are reported using the 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.
Title: ASSISTANCE LISTING (AL) NUMBER
Accounting Policies: Expenditures reported on the Schedule are reported using the 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.
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate
The AL numbers included in the Schedule are determined based on the program name, review of grant
contract information, and the Office of Management and Budget's (OMB) Catalog of Federal Domestic
Assistance. AL numbers are presented for those programs for which such numbers were available.
Title: GENERAL OBJECTIVES
Accounting Policies: Expenditures reported on the Schedule are reported using the 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.
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate
The Authority received grants from the U.S. Department of Defense through the Office of Local Defense
Community Cooperation (OLDCC), formerly the Office of Economic Adjustment (OEA), the Authority's
cognizant federal agency, to plan and undertake community economic development, base redevelopment,
and partner with the Military Departments in response to the proposed or actual expansion, establishment,
realignment, or closure of a military installation by the U.S. Department of Defense. In addition, the Authority
received funds from the US Department of Agriculture Rural Development to rehabilitate and improve the
potable water infrastructure at Naval Station Roosevelt Roads (NRSS).
Title: INDIRECT COSTS
Accounting Policies: Expenditures reported on the Schedule are reported using the 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.
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate
The Authority receives funding from federal government agencies for the redevelopment of the Roosevelt
Roads naval station of the Roosevelt Roads under various grants and contracts. These grants and contracts
provide for reimbursement of indirect costs based on rates to be negotiated with the OLDCC. The Authority
has not negotiated fixed rates for indirect costs through the fiscal year ended June 30, 2021, and has not
elected to use the 10 percent de minimis cost rates as authorized in §200.414 "Indirect (F&A) costs" of
Uniform Guidance.
Title: RELATION TO FEDERAL FINANCIAL REPORTS
Accounting Policies: Expenditures reported on the Schedule are reported using the 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.
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate
The regulations and guidelines governing the preparation of federal financial reports vary by federal agency
and among programs administered by the same agency. Accordingly, the amounts reported in the federal
financial reports do not necessarily agree with the amounts reported in the Schedule, which is prepared using
the accrual basis of accounting as explained in Note 2 of the Schedule. The Uniform Guidance requires that federal financial reports for claims for advances and reimbursements
contain information that is supported by the books and records from which the basic financial statements have
been prepared. The Authority prepares the federal financial reports and claims for reimbursements primarily
based on information from the internal accounting records of the Authority.
Title: SUBSEQUENT EVENTS
Accounting Policies: Expenditures reported on the Schedule are reported using the 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.
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate
Office of Economic Adjustment and Community Development Block Grant
The OEA approved one grant for the fiscal years ended June 30, 2022, and 2021 of $1,656,561, including state
funding, respectively.
The Authority ratified the Community Development Block Grant – Disaster Recovery (CDBG-DR) Subrecipient
agreement with the Puerto Rico Department of Housing to cover the damages suffered by the passing of
Hurricane María by matching the 10% portion of the FEMA funds.
Design Competition for The Marine, Business, Research and Innovation Center (MBRIC)
On August 1, 2022, the Authority requested a proposal for the design of a multi-tenant commercial facility to
house the Marine Business, Research, and Innovation Center (the Center), an oceanographic institute
located at the former Coast Guard Pier, Roosevelt Roads. The Center will be developed in conjunction with
the operator, which will subsequently oversee the operation and maintenance of the facilities. The operator
collaborated with the Authority in the development of the Center as well as in establishing the needs and
requirements necessary for its development. This Center will be funded by a $16 million grant awarded to the
Authority on June 26, 2021, by the U.S. Department of Commerce Economic Development Administration
(EDA). The proposal deadline date was November 17, 2022.