Audit 16348

Accounting Policies: (1) Basis of presentation:The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grants activity of Puerto Rico Community Foundation, Inc. and Subsidiary (the Foundation). The information in the 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 (the Uniform Guidance).Because the Schedule presents only a portion of the activities of the Foundation, it is not intended to, and does not present the financial position, changes in net assets, and cash flows of the Foundation.(2) Summary of significant accounting policies:The Schedule is prepared from the Foundations accounting records and is not intended to present its financial position or the results of its operations. The financial transactions are recorded by the Foundation in accordance with the terms and conditions of the grants, which are consistent with accounting principles generally accepted in the United States of America.Expenditures reported on the Schedule are reported on the accrual basis of accounting. 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.(3) Federal Assistance Listing Numbers (FALN):The FALN numbers included in the Schedule are determined based on the program name, review of grant contract information and the assistance listings in the System for Award Management (SAM.gov) website. FALN numbers are presented for those programs for which such numbers were available.(4) Major federal programs:Major programs are identified in the summary of auditors results section in the Schedule of Findings and Questioned Costs. Federal programs are presented by federal agency.(5) Matching costs:Matching costs, such as the nonfederal share of certain program costs, are not included in the accompanying Schedule.(6) Indirect cost:The Foundation has federally negotiated indirect cost agreements applicable to various programs with approved rates ranging from 5% to 10%.(7) Program clusters:The Uniform Guidance defines a cluster of programs as a grouping of closely related programs that share common compliance requirements. According to this definition, the Economic Development and CDBG Disaster Recovery Grants Pub. L. No. 113-2 were identified as clusters.(8) Contingencies:The Foundation participates in various federally funded programs including the U.S. Department of HomelandSecurity, U.S Department of Commerce, U.S. Department of Housing and U.S. Department of Agriculture,including programs of research and development. These financial assistance programs are routinely subject tocompliance audits by the grantor and/or federal agency. Such grantors and/or federal agencies have theauthority to determine liabilities as well as to limit, suspend, or terminate federal research and developmentprograms.Other federal programs are also subject to audits. Such audits could result in claims against the resources ofthe Foundation. No provision has been made for any liabilities, which may arise from such audits since theamount, if any, cannot be determined at this date De Minimis Rate Used: Y Rate Explanation: Indirect cost:The Foundation has federally negotiated indirect cost agreements applicable to various programs withapproved rates ranging from 5% to 10%.The auditee used the de minimis cost rate.