The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal grant activity of the Village of Hesperia (the “Village”) under programs of the federal government for the year ended March 31, 2026. 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 Village, it is not intended to and does not present the financial position, changes in net position or cash flows of the Village. Expenditures reported on the Schedule are reported on the accrual basis of accounting, which is described in Note 1 to the Village's financial statements. 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. Pass-through entity identifying numbers are presented where available.
For purposes of charging indirect costs to federal awards, the Village has not elected to use the de minimis cost rate as permitted by §200.414 of the Uniform Guidance.
The Village received certain federal grants as subawards from non-federal entities. Pass-through entities, where applicable, have been identified in the Schedule with an abbreviation, defined as follows:
The Village received a loan commitment under the U.S. Environmental Protection Agency’s Drinking Water State Revolving Fund (Assistance Listing 66.468) totaling $5,639,050, of which $3,245,085 is expected to be forgiven under the terms of the agreement. During the March 31, 2026 fiscal year, the Village has drawn $2,891,334 on the loan. The outstanding loan balance at year-end is $3,409,765, which is subject to repayment unless otherwise forgiven. The remaining undrawn balance of $2,229,285 includes the anticipated forgiveness portion. The loan is administered by the Michigan Department of Environment, Great Lakes, and Energy. The Village received a loan commitment under the U.S. Environmental Protection Agency’s Clean Water State Revolving Fund (Assistance Listing 66.458) totaling $6,200,000, of which $1,240,000 is expected to be forgiven under the terms of the agreement. During the March 31, 2026 fiscal year, the Village has drawn $742,566 on the loan. The outstanding loan balance at year-end is $742,566, which is subject to repayment unless otherwise forgiven. The remaining undrawn balance of $5,457,434 includes the anticipated forgiveness portion. The loan is administered by the Michigan Department of Environment, Great Lakes, and Energy.