Audit 48114

Accounting Policies: NOTE 1 BASIS OF PRESENTATION - The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of the Municipality of Aguas Buenas and is presented on the modified-accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America. The basis of accounting is the same used to prepare the fund financial statements. 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). NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Expenditures reported on the Schedule are reported on the modified-accrual basis of accounting. Expenditures for public assistance grants (FEMA) are recognized in the period when: (1) FEMA has approved the PW, and (2) eligible expenditures are incurred. The Assistance Listing Numbers included inthis schedule were determined based on the program name, review of grant contract information and the Office of Management and Budget's Assistance Listing Number. State or local government redistributions of federal awards to the Municipality, known as passthrough 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 passthrough entity and the identifying number assigned by the pass-through entity for the federal awards received as a sub recipient. Numbers identified as N/A are not applicable and numbers identified as N/AV are not available. NOTE 3 RELATIONSHIP TO BASIC FINANCIAL STATEMENTS - A reconciliation of total expenditures related to federal programs included in the statement of revenues, expenditures, and changes in fund balances governmental funds to total expenditures included in theschedule of expenditures of federal awards is as follows: Other Governmental Funds $ 6,220,102, FEMA 2,124,388, ARPA 1,561,012 Less: State Grants (2,975,537), Total expenditures in schedule ofexpenditures of federal awards $ 6,929,965 NOTE 4 INDIRECT COST RATE -The Municipality elected not to use the ten (10) percent of the minimum indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.