Notes to SEFA
The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal grant activity of the Puerto Rico Integrated Transit Authority (the Authority), a component unit of the Commonwealth of Puerto Rico, under programs of the federal government for the 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 (CFR 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 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 Authority, it is not intended to, and does not present, the financial position and changes in net position of the Authority. The Federal Assisting Number is a program identification number. The first two digits identify the federal department or agency that administers the program, and the last three numbers are assigned by numerical sequence. State or local government redistributions of federal awards to the Authority , known as "pass - through awards " should be treated by the Authority 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 unique identifying number assigned to the pass-through entity for the federal awards received as sub-recipient. Numbers identified as N/A are not applicable, and numbers identified as N/AV are not available.
Expenditures reported on the Schedule are reported on 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. For pass-through awards, the Authority records the expenditures of federal programs in the year in which the pass-through entity makes the reimbursement of the cost to the Authority.
The Authority has elected not to use the 10-percent de minimis cost rate allowed under the Uniform Guidance.