Title: Loan/loan guarantee outstanding balances
Accounting Policies: NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES1.The accompanying Schedule of Expenditures of Federal Awards is prepared from Municipalitys accounting records and is not intended to present financial position or the results of operations.2.The Municipality in accordance with the terms records the financial transactions and conditions of the grants, 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, except for the program Disaster Grants- Public Assistance. Expenditures for Disaster Grants- Public Assistance 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-through entity for the Federal awards received as a sub-recipient. Numbers identified as N/AV are not available.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
COMMUNITY DISASTER LOANS (97.030) - Balances outstanding at the end of the audit period were 1200000. COMMUNITY DEVELOPMENT BLOCK GRANTS_SECTION 108 LOAN GUARANTEES (14.248) - Balances outstanding at the end of the audit period were 195000.
Title: NOTE 6 LOAN OUTSTANDING
Accounting Policies: NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES1.The accompanying Schedule of Expenditures of Federal Awards is prepared from Municipalitys accounting records and is not intended to present financial position or the results of operations.2.The Municipality in accordance with the terms records the financial transactions and conditions of the grants, 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, except for the program Disaster Grants- Public Assistance. Expenditures for Disaster Grants- Public Assistance 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-through entity for the Federal awards received as a sub-recipient. Numbers identified as N/AV are not available.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The Municipality had an outstanding loan balance under program Section 108 Loan Guarantee Assistance (CFDA No. 14.248), for which the grantor does not impose continuing compliance requirements. The outstanding balance of the Loan Guarantee Assistance at June 30, 2022 was $195,000.
Title: NOTE 8 COMMUNITY DISASTER LOANS
Accounting Policies: NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES1.The accompanying Schedule of Expenditures of Federal Awards is prepared from Municipalitys accounting records and is not intended to present financial position or the results of operations.2.The Municipality in accordance with the terms records the financial transactions and conditions of the grants, 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, except for the program Disaster Grants- Public Assistance. Expenditures for Disaster Grants- Public Assistance 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-through entity for the Federal awards received as a sub-recipient. Numbers identified as N/AV are not available.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
In fiscal year 2017-2018, FEMA issued to the Municipality a five-year promissory note for a maximum amount of $3,148,312, and in fiscal year 2020-201 FEMA issued to the Municipality a five-year promissory note for a maximum amount of $3,659,000for financial assistance under the Community Disaster Loans (CDL) program, bearing interest at 2.75% annually. The program helps 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, 2022, was $1,200,000. Federal statutes and regulations do not impose continuing compliance requirements on the outstanding balance of the loan, other than the repayment of the loan. Therefore, the outstanding balance of the loan is not included in the face of the Schedule. Program transactions during fiscal year 2021-2022 year are as follows: DescriptionCDLFEMA-DR-4339-PRCDLFEMA-DR-4473-PR TOTALOutstanding note balance, at beginning of year$ 3,148,312 $ -$ 3,148,312Note advances received during fiscal year 2021-2022$ - $ 1,800,000 $ 1,800,000 $ 3,148,312 $ 1,800,000$ 4,948,312Cancelation loan$ (3,148,312)$ (600,000)$ (3,748,312)Balance June 30,2022$ -$ 1,200,000$ 1,200,000Current year loan expenditures$ 12,125$ 1,646,460$ 1,658,585On September 30, 2021, the United States Congress passed The Extending Government Funding and Delivering Emergency Assistance Act (P.L. 117-43). According to P.L. 117-43, Section 1601. (a), Repayments of the remaining balances of all loans, as of September 30, 2021, by the Federal Emergency Management Agency under section 417 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5184) are hereby cancelled. Therefore, the outstanding balance of the loan as of September 30, 2021, amounting to $3,148,312 for FEMA-DR-4339-PR and $600,000 for FEMA-DR-4473-PR were cancelled pursuant to P.L. 117-43.
Title: NOTE 8 COMMUNITY DISASTER LOANS
Accounting Policies: NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES1.The accompanying Schedule of Expenditures of Federal Awards is prepared from Municipalitys accounting records and is not intended to present financial position or the results of operations.2.The Municipality in accordance with the terms records the financial transactions and conditions of the grants, 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, except for the program Disaster Grants- Public Assistance. Expenditures for Disaster Grants- Public Assistance 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-through entity for the Federal awards received as a sub-recipient. Numbers identified as N/AV are not available.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
In fiscal year 2017-2018, FEMA issued to the Municipality a five-year promissory note for a maximum amount of $3,148,312, and in fiscal year 2020-201 FEMA issued to the Municipality a five-year promissory note for a maximum amount of $3,659,000for financial assistance under the Community Disaster Loans (CDL) program, bearing interest at 2.75% annually. The program helps 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, 2022, was $1,200,000. Federal statutes and regulations do not impose continuing compliance requirements on the outstanding balance of the loan, other than the repayment of the loan. Therefore, the outstanding balance of the loan is not included in the face of the Schedule. Program transactions during fiscal year 2021-2022 year are as follows: DescriptionCDLFEMA-DR-4339-PRCDLFEMA-DR-4473-PR TOTALOutstanding note balance, at beginning of year$ 3,148,312 $ -$ 3,148,312Note advances received during fiscal year 2021-2022$ - $ 1,800,000 $ 1,800,000 $ 3,148,312 $ 1,800,000$ 4,948,312Cancelation loan$ (3,148,312)$ (600,000)$ (3,748,312)Balance June 30,2022$ -$ 1,200,000$ 1,200,000Current year loan expenditures$ 12,125$ 1,646,460$ 1,658,585On September 30, 2021, the United States Congress passed The Extending Government Funding and Delivering Emergency Assistance Act (P.L. 117-43). According to P.L. 117-43, Section 1601. (a), Repayments of the remaining balances of all loans, as of September 30, 2021, by the Federal Emergency Management Agency under section 417 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5184) are hereby cancelled. Therefore, the outstanding balance of the loan as of September 30, 2021, amounting to $3,148,312 for FEMA-DR-4339-PR and $600,000 for FEMA-DR-4473-PR were cancelled pursuant to P.L. 117-43.