Audit 24191

Accounting Policies: 1.GENERALThe accompanying schedule of expenditures of federal awards (Schedule) presents the federal financial assistance programs of Cooperativa de Ahorro y Credito Empleados Municipales de Guaynabo (the Credit Union). The reporting entity is defined in Note 1 to the Credit Unions financial statements.2.BASIS OF PRESENTATIONThe accompanying Schedule includes the federal grant activity of the Credit Union under programs of the federal government for the year ended December 31, 2022. The information in this schedule is presented in accordance with the requirements of Uniform Guidance. Because the Schedule presents only a selected portion of the operations of the Credit Union, it is not intended to, and does not, present the balance sheet, statements of members equity, or statements of cash flows of the Credit Union.3.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESExpenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), wherein certain types of expenditures are not allowable or are limited as to reimbursement.4.SUBRECIPIENTS AND OUTSTANDING FEDERAL LOANSOf the expenditures presented in the Schedule, the Credit Union provided no awards to subrecipients. There were no outstanding federal loans at December 31, 2022.5.INDIRECT COST RATEThe Credit Union has elected not to use the ten percent (10%) de minimis indirect cost rate.6.USAGE OF FEDERAL AWARDSThe Credit Union elected to use the federal awards received to contribute to their capital reserve, in agreement and compliance with requirements of Funding Opportunity Number: CDFI 2021RRP. For the year ended December 31, 2022, the Credit Union received funds for $-0- and used deferred grant income of $1,255,062 to contributed $848,443 to their capital reserve, use $200,000 for the provision for uncollectible loans, use $80,853 to purchase equipment and $125,766 for expenses, leaving a deferred grant income of $71,203. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.