Title: Assistance Listing (AL) Number
Accounting Policies: Expenditures reported in 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 may or may not be allowable or may be limited as to reimbursement. The University has elected not to use the 10 percent de minimis 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.
The AL numbers included in the Schedule are determined based on the program name, review of grant contract information and the OMBs Assistance Listing Number.
Title: Major Federal Programs
Accounting Policies: Expenditures reported in 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 may or may not be allowable or may be limited as to reimbursement. The University has elected not to use the 10 percent de minimis 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 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: Accounting Policies for Loans and Loan Guarantees
Accounting Policies: Expenditures reported in 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 may or may not be allowable or may be limited as to reimbursement. The University has elected not to use the 10 percent de minimis 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.
The University participates in the Federal Direct Student Loans (Direct Loans) program of the U.S. Department of Education (USDE). 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 consolidated financial statements of the University. However, Direct Loans are considered a component of the student financial assistance programs of the University, as such, new loans processed during the year ended June 30, 2022 amounting to $65,160,355 were included in the Schedule. Federal expenditures for Direct Loans are determined when loans are made to the students, accordingly, the balance of Direct Loans from previous years is not considered federal expenditures of the current year. Direct Loans are made by the Secretary of Education. The Students Aid Reports (SAR) or Institutional Student Information Record (ISIR), along with other information, is used by the University to originate a students loan.
Title: Noncash Program
Accounting Policies: Expenditures reported in 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 may or may not be allowable or may be limited as to reimbursement. The University has elected not to use the 10 percent de minimis 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.
The consolidated financial statements of the University include the following notes payable to the USDE, which are not included in the Schedule: Advances under a credit agreement with the U.S. Department of Education, payable in semiannual installments of $95,816, including interest, through November 2024, with interest at 5.50% and secured by a mortgage note on certain building in the San German campus $523,382. Advances under a credit agreement with the U.S. Department of Education, payable in semiannual installments of $14,304, including interest, through January 2030, with interest at 5.50% and secured by a mortgage note on certain building in the Fajardo campus $183,156. Advances under a credit agreement with the U.S. Department of Education, payable in semiannual installments of $60,569, including interest, through April 2030, with interest at 5.50% and secured by a mortgage note on certain property in the San German campus $775,566.