The accompanying Schedule of Expenditures of Federal Awards (Schedule) includes the Federal grant activity of the Municipality of Maricao, Puerto Rico (Municipality) under programs of the federal government for the fiscal year ended June 30, 2025. 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 this Schedule may differ from amounts presented in or used in the preparation of the basic financial statements. The reporting entity is defined in Note 1 (B) to the basic financial statements.
1. The Schedule is prepared from Municipality’s accounting records and presents only a selected portion of the operations of the Municipality, it is not intended to, and does not present, the financial position or changes in net position of the Municipality. 2. The Municipality in accordance with the terms and conditions of the grants, records the financial transactions which are consistent with accounting principles generally accepted in the United States of America. 3. Expenditures are recognized in the accounting period in which the liability is incurred, if measurable or when actually paid, whichever occurs first. 4. Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Expenditures are recognized when the related liability is incurred, following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Expenditures for the following programs are recognized based on other unique requirements: 1) Section 8 Housing Choice Vouchers (HCV) expenditures are equal to the ACC subsidy for the PHA fiscal period; and 2) Disaster Grants-Public Assistance (FEMA) expenditures are recognized in the period when; (a) FEMA has approved the PW and (b) eligible expenditures are incurred. 5. State or local government redistributions of federal awards to the Municipality, known as “pass–through awards”, should be treated by the Municipality as though they were received directly from the federal government. The Uniform Guidance requires the schedule to include the name of the pass–through entity and the identifying number assigned by the pass_x0002_through entity for the federal awards received as a subrecipient. Numbers identified as N/A are not applicable and numbers identified as N/AV are not available.
The Assistance Listing Number, formerly known as the Catalog of Federal Domestic Assistance (CFDA) Number, is a five_x0002_digit number assigned in the awarding document for all Federal assistance awards, including Federal grants and cooperative agreements.
The Municipality has elected not to use the 10-percent de minimis cost rate allowed under the Uniform Guidance.
Major programs are identified in the Summary of Auditors’ Results Section of the Schedule of Findings and Questioned Costs.
FEMA issued to the Municipality a two five-year promissory note for a maximum amount of $568,644 and $1,851,499, respectively, for financial assistance under the Community Disaster Loans (“CDL”) program, bearing interest at 0.875% annually and 2.75% annually, respectively. The program provides assistance to local governments to overcome a loss in revenues as a result of a natural disaster, in order to perform its governmental operational functions. Neither principal nor interest payments are required until maturity. The terms of the loan provide that if the Municipality has not recovered sufficiently to meet its operating budget after three full fiscal years, repayment of all or part of the loan may be cancelled. The principal balance at June 30, 2025, was $2,420,143. Federal statutes and regulations do not impose continuing compliance requirements on the outstanding balance of the loan, other than the repayment of the loan. Therefore, the outstanding balance of the loan is not included in the face of the Schedule. Program transactions during 2024-2025 year are as follows:
RECONCILIATION OF EXPENDITURES PRESENTED IN THE SCHEDULE OF FEDERAL AWARDS TO THE EXPENDITURES PRESENTED IN THE BASIC FINANCIAL STATEMENTS