Title: BASIS OF PRESENTATION
Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized when the liability is incurred, following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Expenditures for the public assistance disaster grant program are recognized in the period when: (1) the Federal Emergency Management Agency (FEMA) has approved the Project Worksheet (PW), and (2) eligible expenditures are incurred. It is drawn primarily from the PRIDCO’s internal accounting records, which are the basis for the PRIDCO’s Statement of Revenues, Expenses, and Changes in Net Position (the “Statement”).
B.
Negative amounts, if any, shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years.
C.
Pass-through entity identifying numbers are presented where available and applicable
De Minimis Rate Used: N
Rate Explanation: PRIDCO has not elected to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance
The accompanying Schedule of Expenditures of Federal Awards (“the Schedule”) includes the Federal grant activities of the Puerto Rico Industrial Development Company of the Commonwealth of Puerto Rico (PRIDCO) for the 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 (Uniform Guidance).
Title: BASIS OF PRESENTATION
Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized when the liability is incurred, following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Expenditures for the public assistance disaster grant program are recognized in the period when: (1) the Federal Emergency Management Agency (FEMA) has approved the Project Worksheet (PW), and (2) eligible expenditures are incurred. It is drawn primarily from the PRIDCO’s internal accounting records, which are the basis for the PRIDCO’s Statement of Revenues, Expenses, and Changes in Net Position (the “Statement”).
B.
Negative amounts, if any, shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years.
C.
Pass-through entity identifying numbers are presented where available and applicable
De Minimis Rate Used: N
Rate Explanation: PRIDCO has not elected to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance
Therefore, some amounts presented in this Schedule may differ from amounts presented in, or used in the preparation of, the financial statements. PRIDCO reporting entity is defined in Note (1) (A) to the financial statements. All Federal financial awards received directly from Federal agency as well as Federal financial awards passed-through other government agencies, if any, are included on the Schedule.
Title: LATE ISSUANCE OF SINGLE AUDIT REPORTING PACKAGE
Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized when the liability is incurred, following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Expenditures for the public assistance disaster grant program are recognized in the period when: (1) the Federal Emergency Management Agency (FEMA) has approved the Project Worksheet (PW), and (2) eligible expenditures are incurred. It is drawn primarily from the PRIDCO’s internal accounting records, which are the basis for the PRIDCO’s Statement of Revenues, Expenses, and Changes in Net Position (the “Statement”).
B.
Negative amounts, if any, shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years.
C.
Pass-through entity identifying numbers are presented where available and applicable
De Minimis Rate Used: N
Rate Explanation: PRIDCO has not elected to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance
The Single Audit reporting package, as defined and required in 2 CFR 200 for fiscal year ended June 30, 2022, could not be submitted in a timely manner.
Title: SCHEDULE NOT IN AGREEMENT WITH OTHER FEDERAL AWARD REPORTING
Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized when the liability is incurred, following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Expenditures for the public assistance disaster grant program are recognized in the period when: (1) the Federal Emergency Management Agency (FEMA) has approved the Project Worksheet (PW), and (2) eligible expenditures are incurred. It is drawn primarily from the PRIDCO’s internal accounting records, which are the basis for the PRIDCO’s Statement of Revenues, Expenses, and Changes in Net Position (the “Statement”).
B.
Negative amounts, if any, shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years.
C.
Pass-through entity identifying numbers are presented where available and applicable
De Minimis Rate Used: N
Rate Explanation: PRIDCO has not elected to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance
The information included in the Schedule may not fully agree with other Federal award reports submitted directly to Federal granting agencies.
Title: ASSISTANCE LISTING NUMBER
Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized when the liability is incurred, following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Expenditures for the public assistance disaster grant program are recognized in the period when: (1) the Federal Emergency Management Agency (FEMA) has approved the Project Worksheet (PW), and (2) eligible expenditures are incurred. It is drawn primarily from the PRIDCO’s internal accounting records, which are the basis for the PRIDCO’s Statement of Revenues, Expenses, and Changes in Net Position (the “Statement”).
B.
Negative amounts, if any, shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years.
C.
Pass-through entity identifying numbers are presented where available and applicable
De Minimis Rate Used: N
Rate Explanation: PRIDCO has not elected to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance
The Assistance Listing Number, formerly known as the Catalog of Federal Domestic Assistance (CFDA) Number, is a five-digit number assigned in the awarding document for all Federal assistance award mechanisms, including Federal grants and cooperative agreements.
Title: RECONCILIATION OF EXPENDITURES PRESENTED IN THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS TO THE EXPENDITURES PRESENTED IN THE BASIC FINANCIAL STATEMENTS
Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized when the liability is incurred, following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Expenditures for the public assistance disaster grant program are recognized in the period when: (1) the Federal Emergency Management Agency (FEMA) has approved the Project Worksheet (PW), and (2) eligible expenditures are incurred. It is drawn primarily from the PRIDCO’s internal accounting records, which are the basis for the PRIDCO’s Statement of Revenues, Expenses, and Changes in Net Position (the “Statement”).
B.
Negative amounts, if any, shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years.
C.
Pass-through entity identifying numbers are presented where available and applicable
De Minimis Rate Used: N
Rate Explanation: PRIDCO has not elected to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance
After a presidentially declared disaster, FEMA provides Disaster Grants – Public Assistance (Presidentially Declared Disasters) (CFDA 97.036) to reimburse eligible costs associated with repair, replacement or restoration of disaster-damaged facilities. The Federal government makes reimbursements in the form of cost-shared grants that commonly require state matching funds. PRIDCO receives FEMA reimbursement funds from the Central Recovery and Reconstruction Office of Puerto Rico (COR3). COR3 is a division of the Puerto Rico Public Private Authority created through Executive Order 2017-65 to manage all efforts for the recovery of the Commonwealth of Puerto Rico (Commonwealth) after the passage of Hurricanes Irma and María.
Title: RECONCILIATION OF EXPENDITURES PRESENTED IN THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS TO THE EXPENDITURES PRESENTED IN THE BASIC FINANCIAL STATEMENTS
Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized when the liability is incurred, following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Expenditures for the public assistance disaster grant program are recognized in the period when: (1) the Federal Emergency Management Agency (FEMA) has approved the Project Worksheet (PW), and (2) eligible expenditures are incurred. It is drawn primarily from the PRIDCO’s internal accounting records, which are the basis for the PRIDCO’s Statement of Revenues, Expenses, and Changes in Net Position (the “Statement”).
B.
Negative amounts, if any, shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years.
C.
Pass-through entity identifying numbers are presented where available and applicable
De Minimis Rate Used: N
Rate Explanation: PRIDCO has not elected to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance
In addition, during the incident period of 12/28/2019 through 7/3/2020, Puerto Rico M6.5 Earthquake created an immediate threat to the health and safety of the general public requiring emergency response and protective measures. PRIDCO was granted, through COR3, different disaster recovery grants of FEMA related to these events of earthquakes.
Title: RECONCILIATION OF EXPENDITURES PRESENTED IN THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS TO THE EXPENDITURES PRESENTED IN THE BASIC FINANCIAL STATEMENTS
Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized when the liability is incurred, following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Expenditures for the public assistance disaster grant program are recognized in the period when: (1) the Federal Emergency Management Agency (FEMA) has approved the Project Worksheet (PW), and (2) eligible expenditures are incurred. It is drawn primarily from the PRIDCO’s internal accounting records, which are the basis for the PRIDCO’s Statement of Revenues, Expenses, and Changes in Net Position (the “Statement”).
B.
Negative amounts, if any, shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years.
C.
Pass-through entity identifying numbers are presented where available and applicable
De Minimis Rate Used: N
Rate Explanation: PRIDCO has not elected to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance
COR3 was authorized by the Governor to receive all disaster recovery grants of FEMA. In Fiscal Year (FY) 2022, FEMA approved $679 thousand for eligible expenditures that were incurred during the fiscal year 2022.
Title: RECONCILIATION OF EXPENDITURES PRESENTED IN THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS TO THE EXPENDITURES PRESENTED IN THE BASIC FINANCIAL STATEMENTS
Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized when the liability is incurred, following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Expenditures for the public assistance disaster grant program are recognized in the period when: (1) the Federal Emergency Management Agency (FEMA) has approved the Project Worksheet (PW), and (2) eligible expenditures are incurred. It is drawn primarily from the PRIDCO’s internal accounting records, which are the basis for the PRIDCO’s Statement of Revenues, Expenses, and Changes in Net Position (the “Statement”).
B.
Negative amounts, if any, shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years.
C.
Pass-through entity identifying numbers are presented where available and applicable
De Minimis Rate Used: N
Rate Explanation: PRIDCO has not elected to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance
During the month of October 2022, COR3 issued a first Request for Information (RFI) that required PRIDCO to submit some clarification regarding descriptions included under PW1035. The PW requests funding for Direct Administrative Costs (DAC) that PRIDCO incurred performing damages assessment from 2017 to 2019. On March 8, 2023, COR3 issued a second RFI on which they notified that the amount of the claim was adjusted for $159,649.84 because PRIDCO management decided not to resubmit the RFR. In addition, the claim was reduced by $33,470.88 considering the adjustment for the state cost share.