Title: Note 3
Accounting Policies: Note 1 - Basis of PresentationThe accompanying supplementary Schedule of Expenditures of Federal Awards (the Schedule) includes the federal grant activity of Universidad Central de Bayamon, Inc. (the University) and is presented on the accrual basis of accounting. The information in the Schedule is prepared in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (the Uniform Guidance). Therefore, some amounts presented in the Schedule may differ from amounts presented in, or used in the preparation of the financial statements of the University.Because the Schedule presents only a selected portion of the operations of the University, it is not intended to, and does not, present the financial position, changes in net assets, and cash flows of the University. Funds received for Student Financial Assistance Program (principally Pell Grant) that are awarded to students are excluded from revenue and expenses in the financial statements of the University. These grants are applied to the students tuition and fees, and any excess is paid to the students.Note 2 - Summary of Significant Accounting Policiesa. The Schedule is prepared from the Universitys accounting records and is not intended to present its financial position or the results of its operations.b. Expenditures are recognized following the cost principle contained in the Uniform Guidance, wherein certain types of expenditures may or may not be available or may be limited as to reimbursement.c. The financial transactions are recorded by the University in accordance with the terms and conditions of the grants, which are consistent with accounting principles generally accepted in the United States of America.d. Expenditures are recognized in the accounting period in which the liability is incurred, if measurable or when actually paid, whichever occurs first.e. The University has elected not to use the 10-percent de minims indirect cost rate as allowed under the Uniform Guidance.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
Assistance Listing NumberThe assistance listing numbers included in the Schedule are determined based in the program name, review of grant contract information and the System for Award Management (SAM).
Title: Note 4
Accounting Policies: Note 1 - Basis of PresentationThe accompanying supplementary Schedule of Expenditures of Federal Awards (the Schedule) includes the federal grant activity of Universidad Central de Bayamon, Inc. (the University) and is presented on the accrual basis of accounting. The information in the Schedule is prepared in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (the Uniform Guidance). Therefore, some amounts presented in the Schedule may differ from amounts presented in, or used in the preparation of the financial statements of the University.Because the Schedule presents only a selected portion of the operations of the University, it is not intended to, and does not, present the financial position, changes in net assets, and cash flows of the University. Funds received for Student Financial Assistance Program (principally Pell Grant) that are awarded to students are excluded from revenue and expenses in the financial statements of the University. These grants are applied to the students tuition and fees, and any excess is paid to the students.Note 2 - Summary of Significant Accounting Policiesa. The Schedule is prepared from the Universitys accounting records and is not intended to present its financial position or the results of its operations.b. Expenditures are recognized following the cost principle contained in the Uniform Guidance, wherein certain types of expenditures may or may not be available or may be limited as to reimbursement.c. The financial transactions are recorded by the University in accordance with the terms and conditions of the grants, which are consistent with accounting principles generally accepted in the United States of America.d. Expenditures are recognized in the accounting period in which the liability is incurred, if measurable or when actually paid, whichever occurs first.e. The University has elected not to use the 10-percent de minims indirect cost rate as allowed under the Uniform Guidance.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
Major Federal ProgramsMajor 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.
Title: Note 5
Accounting Policies: Note 1 - Basis of PresentationThe accompanying supplementary Schedule of Expenditures of Federal Awards (the Schedule) includes the federal grant activity of Universidad Central de Bayamon, Inc. (the University) and is presented on the accrual basis of accounting. The information in the Schedule is prepared in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (the Uniform Guidance). Therefore, some amounts presented in the Schedule may differ from amounts presented in, or used in the preparation of the financial statements of the University.Because the Schedule presents only a selected portion of the operations of the University, it is not intended to, and does not, present the financial position, changes in net assets, and cash flows of the University. Funds received for Student Financial Assistance Program (principally Pell Grant) that are awarded to students are excluded from revenue and expenses in the financial statements of the University. These grants are applied to the students tuition and fees, and any excess is paid to the students.Note 2 - Summary of Significant Accounting Policiesa. The Schedule is prepared from the Universitys accounting records and is not intended to present its financial position or the results of its operations.b. Expenditures are recognized following the cost principle contained in the Uniform Guidance, wherein certain types of expenditures may or may not be available or may be limited as to reimbursement.c. The financial transactions are recorded by the University in accordance with the terms and conditions of the grants, which are consistent with accounting principles generally accepted in the United States of America.d. Expenditures are recognized in the accounting period in which the liability is incurred, if measurable or when actually paid, whichever occurs first.e. The University has elected not to use the 10-percent de minims indirect cost rate as allowed under the Uniform Guidance.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
Accounting Policies for Loans and Loan GuaranteesThe University participates in the Federal Direct Student Loans (Direct Loans) Program (ALN 84.268) of the U.S. Department of Education (USDE) since July 1, 2010. Loans made through the Direct Loans program include subsidized and unsubsidized Federal Stafford Loans and Federal PLUS loans. Although the University is not the recipient of the funds, such program is considered a component of the student financial assistance program at the University. Under the Direct Loans program, the University is responsible only for certain administrative duties, accordingly, the disbursements under the program and the outstanding loan balances are excluded from the financial statements of the University. New loans processed for students during the year ended June 30, 2022 were $1,751,670.
Title: Note 6
Accounting Policies: Note 1 - Basis of PresentationThe accompanying supplementary Schedule of Expenditures of Federal Awards (the Schedule) includes the federal grant activity of Universidad Central de Bayamon, Inc. (the University) and is presented on the accrual basis of accounting. The information in the Schedule is prepared in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (the Uniform Guidance). Therefore, some amounts presented in the Schedule may differ from amounts presented in, or used in the preparation of the financial statements of the University.Because the Schedule presents only a selected portion of the operations of the University, it is not intended to, and does not, present the financial position, changes in net assets, and cash flows of the University. Funds received for Student Financial Assistance Program (principally Pell Grant) that are awarded to students are excluded from revenue and expenses in the financial statements of the University. These grants are applied to the students tuition and fees, and any excess is paid to the students.Note 2 - Summary of Significant Accounting Policiesa. The Schedule is prepared from the Universitys accounting records and is not intended to present its financial position or the results of its operations.b. Expenditures are recognized following the cost principle contained in the Uniform Guidance, wherein certain types of expenditures may or may not be available or may be limited as to reimbursement.c. The financial transactions are recorded by the University in accordance with the terms and conditions of the grants, which are consistent with accounting principles generally accepted in the United States of America.d. Expenditures are recognized in the accounting period in which the liability is incurred, if measurable or when actually paid, whichever occurs first.e. The University has elected not to use the 10-percent de minims indirect cost rate as allowed under the Uniform Guidance.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
Endowment Grant ProgramsThe University received in prior years grants in the amount of $91,474, $120,000, $180,000, $40,000, $25,000 and $50,000 from the Higher Education Institutional Aid Strengthening Institutions Program, the Title III Hispanic-Serving Institutions (HIS) STEM and Articulations Programs, and the Title V Developing Hispanic- Serving Institutions (HIS), respectively. The grants require 100% matching contributions from the institutional fund and the income earned on the amount. The University must invest and shall not expend the Endowment Fund Corpus for a period of twenty (20) years. Afterwards, the Endowment Fund Corpus can be used for any educational purpose. During the grant period, the University may not use more than fifty percent (50%) of the aggregate income earned. Therefore, the endowment fund includes both donor-restricted funds and unrestricted funds designated by the Board of Trustees. Restriction on the grants expires as follows: $91,474 grant expires in August 2032, $120,000 grant expires in 2035, $180,000 and $40,000 grants expire in 2037, $25,000 grants expire in 2039 and $50,000 grants expire in 2040. At the time these grants expire, the outstanding balances of these endowment funds are no longer temporarily restricted and become part of the Universitys unrestricted net assets.Balance on the remaining funds, including accrued interest and dividends since inception, amounted to $1,304,656 at June 30, 2022. Net loss for the year ended June 30, 2022 amounted to $146,040, which represents 100% of investment loss generated by the above-mentioned grants. Investment income (loss), as defined above, includes interest, dividends and realized and unrealized gains/losses in investment securities, net of investment expenses.