Audit 323242

Title: Basis of Presentation Accounting Policies: Expenditures reported on the accompanying Schedule are presented using 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. The amounts reported in the Schedule as expenditures may differ from certain financial reports submitted to federal funding agencies due to those reports being submitted on either a cash or modified accrual basis of accounting. De Minimis Rate Used: N Rate Explanation: PROMESA has a federally negotiated indirect cost rate for its federal programs and has not elected to use the 10% de minimis rate allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal award activity of The Puerto Rican Organization to Motivate, Enlighten and Serve Addicts, Inc. (“PROMESA”) under programs of the federal government for the year ended December 31, 2023. All financial awards received directly from federal agencies as well as financial awards passed through other governmental agencies or non-profit organizations are included on the Schedule. The information in this 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 ("Uniform Guidance"). Because the Schedule presents only a selected portion of the operations of PROMESA, it is not intended to and does not present the financial position, changes in net assets, or cash flows of PROMESA.