Title: Loan Programs
Accounting Policies: (1) Basis of Presentation: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grants activity of Sistema Universitario Ana G. Mendez, Incorporado and Subsidiary (the Institution). 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 Institution, it is not intended to, and does not present the financial position, changes in net assets, and cash flows of the Institution. Basis of Accounting: The Schedule is presented using the accrual basis of accounting. 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. Matching Costs: Matching costs, such as the nonfederal share of certain program costs, are not included in the accompanying Schedule. Relationship to Federal Financial Reports: The regulations and guidelines governing the preparation of Federal financial reports vary by Federal agency and among programs administered by the same agency. Accordingly, the amounts reported in the Federal financial reports do not necessarily agree with the amounts reported in the accompanying schedule, which is prepared on the basis of accounting described in Note 2.Office of Management and Budget under the Uniform Guidance requires that federal financial reports and claims for advances and reimbursements contain information that is supported by the books and records from which the basic financial statements have been prepared. The Institution prepares the federal financial reports and claims for reimbursements primarily based on information from the internal accounting records of the respective educational institutions: Universidad Ana G. Mendez Carolina Campus, Universidad Ana G. Mendez Cupey Campus, Universidad Ana G. Mendez-Gurabo Campus and Universidad Ana G. Mendez Online Campus. Contingencies The grant amounts received are subject to audit and adjustment. If any expenditure is disallowed by the grantor agencies as a result of such an audit, any claim for reimbursement to the grantor agencies would become a liability of the Institution. In the opinion of management, all grant expenditures are in compliance with the terms of the grant agreements and applicable federal laws and regulations.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
Loan Programs: During the fiscal year ended July 31, 2022, the Institution processed new loans under the Federal Assistance Listing Number 84.268. The total amount included on the Schedule of Expenditures includes the new loans processed of $156,447,117 and $469,660 of adjustments related to loans made in prior periods. Since the Institution does not make loans, the new loans made in the fiscal year ended July 31, 2022 relating to this program are considered current year federal expenditures, whereas the outstanding loan balances are not. The new loans made in the fiscal year ended July 31, 2022 are reported in the Schedule of Expenditures of Federal Awards.
Title: Program Clusters
Accounting Policies: (1) Basis of Presentation: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grants activity of Sistema Universitario Ana G. Mendez, Incorporado and Subsidiary (the Institution). 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 Institution, it is not intended to, and does not present the financial position, changes in net assets, and cash flows of the Institution. Basis of Accounting: The Schedule is presented using the accrual basis of accounting. 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. Matching Costs: Matching costs, such as the nonfederal share of certain program costs, are not included in the accompanying Schedule. Relationship to Federal Financial Reports: The regulations and guidelines governing the preparation of Federal financial reports vary by Federal agency and among programs administered by the same agency. Accordingly, the amounts reported in the Federal financial reports do not necessarily agree with the amounts reported in the accompanying schedule, which is prepared on the basis of accounting described in Note 2.Office of Management and Budget under the Uniform Guidance requires that federal financial reports and claims for advances and reimbursements contain information that is supported by the books and records from which the basic financial statements have been prepared. The Institution prepares the federal financial reports and claims for reimbursements primarily based on information from the internal accounting records of the respective educational institutions: Universidad Ana G. Mendez Carolina Campus, Universidad Ana G. Mendez Cupey Campus, Universidad Ana G. Mendez-Gurabo Campus and Universidad Ana G. Mendez Online Campus. Contingencies The grant amounts received are subject to audit and adjustment. If any expenditure is disallowed by the grantor agencies as a result of such an audit, any claim for reimbursement to the grantor agencies would become a liability of the Institution. In the opinion of management, all grant expenditures are in compliance with the terms of the grant agreements and applicable federal laws and regulations.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
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 Research and Development, Economic Development, TRIO, Student Financial Assistance and Head Start were identified as clusters.