Title: BASIS OF PRESENTATION
Accounting Policies: Expenditures reported on the Schedule are reported on the cash basis method of accounting. It is drawn primarily from the Department's internal accounting records, which are the basis for the Department's Statement of Cash Receipts and Cash Disbursements. Such expenditures are recognized following the cost principles contained in OMB Circular A-87, Cost Principles for States, Local, and Indian Tribal Governments and Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Expenditures for Public Assistance Grants (FEMA) are recognized in the period under: (1) FEMA has approved the PW, and (2) eligible expenditures are incurred. The Federal Assistance Listing number (formerly known as Catalog of Federal Domestic Assistance (CFDA) Number), is a program identification number. The first two digits identify the federal department of agency that administers the program and the last three digits numbers are assigned by numerical sequence. State or local government redistributions of federal awards to the Department, known as “pass-through awards” should be treated by the Department 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/A are not applicable and numbers identified as N/AV are not available.
De Minimis Rate Used: Both
Rate Explanation: The Department has not elected to use the 10% of minimis indirect cost rate allowed under the 200.414 Indirect (F&A) costs of the Uniform Guidance. However, for the year ended June 30, 2022, the Department was authorized by the U.S. Department of Interior to charge an indirect cost rate of 10% until a proposal of indirect cost is submitted and approved. Subsequently, on September 11, 2023, the U.S. Department of Interior approved an indirect cost rate of 27.25% to the Department based on the proposal submitted. Also, the U.S. Environmental Protection Agency (EPA) approved to the Department an indirect cost rate of 46.86% to those contracts awarded by EPA to the Department’s Environmental Quality Program.
The accompanying Schedule of Expenditures of Federal Awards (the "Schedule") includes the federal grant activity of the Department of Natural and Environmental Resources of the Commonwealth of Puerto Rico (the Department) under programs of the federal government for the fiscal year ended June 30, 2022. 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. Because the Schedule presents only a selected portion of the operations of the Department, it is not intended to and does not purport to present the financial position, changes in net assets, or cash flows of the Department.
Title: CLUSTER
Accounting Policies: Expenditures reported on the Schedule are reported on the cash basis method of accounting. It is drawn primarily from the Department's internal accounting records, which are the basis for the Department's Statement of Cash Receipts and Cash Disbursements. Such expenditures are recognized following the cost principles contained in OMB Circular A-87, Cost Principles for States, Local, and Indian Tribal Governments and Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Expenditures for Public Assistance Grants (FEMA) are recognized in the period under: (1) FEMA has approved the PW, and (2) eligible expenditures are incurred. The Federal Assistance Listing number (formerly known as Catalog of Federal Domestic Assistance (CFDA) Number), is a program identification number. The first two digits identify the federal department of agency that administers the program and the last three digits numbers are assigned by numerical sequence. State or local government redistributions of federal awards to the Department, known as “pass-through awards” should be treated by the Department 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/A are not applicable and numbers identified as N/AV are not available.
De Minimis Rate Used: Both
Rate Explanation: The Department has not elected to use the 10% of minimis indirect cost rate allowed under the 200.414 Indirect (F&A) costs of the Uniform Guidance. However, for the year ended June 30, 2022, the Department was authorized by the U.S. Department of Interior to charge an indirect cost rate of 10% until a proposal of indirect cost is submitted and approved. Subsequently, on September 11, 2023, the U.S. Department of Interior approved an indirect cost rate of 27.25% to the Department based on the proposal submitted. Also, the U.S. Environmental Protection Agency (EPA) approved to the Department an indirect cost rate of 46.86% to those contracts awarded by EPA to the Department’s Environmental Quality Program.
SEE THE NOTES TO SEFA FOR CHART/TABLE
Title: RELATIONSHIP TO THE STATEMENT
Accounting Policies: Expenditures reported on the Schedule are reported on the cash basis method of accounting. It is drawn primarily from the Department's internal accounting records, which are the basis for the Department's Statement of Cash Receipts and Cash Disbursements. Such expenditures are recognized following the cost principles contained in OMB Circular A-87, Cost Principles for States, Local, and Indian Tribal Governments and Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Expenditures for Public Assistance Grants (FEMA) are recognized in the period under: (1) FEMA has approved the PW, and (2) eligible expenditures are incurred. The Federal Assistance Listing number (formerly known as Catalog of Federal Domestic Assistance (CFDA) Number), is a program identification number. The first two digits identify the federal department of agency that administers the program and the last three digits numbers are assigned by numerical sequence. State or local government redistributions of federal awards to the Department, known as “pass-through awards” should be treated by the Department 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/A are not applicable and numbers identified as N/AV are not available.
De Minimis Rate Used: Both
Rate Explanation: The Department has not elected to use the 10% of minimis indirect cost rate allowed under the 200.414 Indirect (F&A) costs of the Uniform Guidance. However, for the year ended June 30, 2022, the Department was authorized by the U.S. Department of Interior to charge an indirect cost rate of 10% until a proposal of indirect cost is submitted and approved. Subsequently, on September 11, 2023, the U.S. Department of Interior approved an indirect cost rate of 27.25% to the Department based on the proposal submitted. Also, the U.S. Environmental Protection Agency (EPA) approved to the Department an indirect cost rate of 46.86% to those contracts awarded by EPA to the Department’s Environmental Quality Program.
Expenditures included in the Schedule agree with the amounts included in the accompanying Statement of Cash Receipts and Cash Disbursements.
Title: EXTENSION OF SINGLE AUDIT SUBMISSION
Accounting Policies: Expenditures reported on the Schedule are reported on the cash basis method of accounting. It is drawn primarily from the Department's internal accounting records, which are the basis for the Department's Statement of Cash Receipts and Cash Disbursements. Such expenditures are recognized following the cost principles contained in OMB Circular A-87, Cost Principles for States, Local, and Indian Tribal Governments and Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Expenditures for Public Assistance Grants (FEMA) are recognized in the period under: (1) FEMA has approved the PW, and (2) eligible expenditures are incurred. The Federal Assistance Listing number (formerly known as Catalog of Federal Domestic Assistance (CFDA) Number), is a program identification number. The first two digits identify the federal department of agency that administers the program and the last three digits numbers are assigned by numerical sequence. State or local government redistributions of federal awards to the Department, known as “pass-through awards” should be treated by the Department 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/A are not applicable and numbers identified as N/AV are not available.
De Minimis Rate Used: Both
Rate Explanation: The Department has not elected to use the 10% of minimis indirect cost rate allowed under the 200.414 Indirect (F&A) costs of the Uniform Guidance. However, for the year ended June 30, 2022, the Department was authorized by the U.S. Department of Interior to charge an indirect cost rate of 10% until a proposal of indirect cost is submitted and approved. Subsequently, on September 11, 2023, the U.S. Department of Interior approved an indirect cost rate of 27.25% to the Department based on the proposal submitted. Also, the U.S. Environmental Protection Agency (EPA) approved to the Department an indirect cost rate of 46.86% to those contracts awarded by EPA to the Department’s Environmental Quality Program.
In accordance with the Federal Office of Management and Budget Memorandum of March 19, 2021, agencies should allow grantees to delay the completion and submission of the single audit report, as required under Subpart F of 2 C.F.R. Part 200 - Audits Requirements, to six (6) months beyond the normal due date. In addition, on September 18, 2022, Puerto Rico was declared a major disaster area due to the pass of the Hurricane Fiona. As a result, the OMB has granted a six months extension for single audit that cover recipients in Puerto Rico and have due dates between September 18, 2022 and December 31, 2022. As described in finding 2022-004 in Section III of the Schedule of Findings and Questioned Costs, the Department was unable submit the Data Collection Form and Reporting Package to the Federal Audit Clearinghouse of fiscal year ending June 30, 2022 during the required period.