The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of the Municipality under programs of the federal government for the 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 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.
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.
The Municipality did not elect to use the ten (10) percent of the minimum indirect cost rate allowed under the Uniform Guidance.
The expenditures of the schedule are included in the Municipality’s basic financial statements. The reconciliation of expenditures in the basic financial statements to the Schedule of Expenditures of Federal Awards is as follows: ExpendituresTotal federal expenditures per schedule6,799,007$ Federal expenditures per basic financial statements included within:General Fund1,479$ ARPA Fund2,677,155 Hurricane Maria Fund1,528,197 Other Governmental Funds2,592,177 Total6,799,007$
As reported in Note 15 to the financial statements, the Municipality had an outstanding federal loan balance as of June 30, 2024. FEMA awarded the Municipality a Community Disaster Loan (CDL) with a maximum limit amount of $5 million at 2.75%. The CDL program provide assistance to local governments to overcome a loss in revenues as a result of a natural disaster, and in order to provide funds to continue its governmental operational functions. Neither principal nor interest payments are required to be paid until the CDL maturity. The terms of the CDL provide, as a condition, that the Municipality shall recover sufficient revenues to meet its operating budget after three full years next to the fiscal year in which the natural disaster occurred. In the case in which the Municipality does not recover sufficient revenues, the repayment of the whole or part of the CDL might be cancelled by the Federal Government. In June 2018 and June 2021, FEMA issued to the Municipality a promissory note of $3,090,052 and $2,613,301 respectively for financial assistance under the CDL. DescriptionAmountOutstanding note balance, at beginning year490,371$ Notes advances received during fiscal year 2023-2024- Community disaster loan forgiveness- Total outstanding note balance, June 30, 2024490,371$ Current year loan expense1,479$