Audit 337512

Title: BASIS OF PRESENTATION Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, the cost principles contained in Subpart E of Title 2 U.S. Code of Federal Regulation Part 200, wherein certain types of expenditures are not allowable or are limited as to reimbursement. B. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. C. Pass-through entity identifying numbers are presented where available and applicable De Minimis Rate Used: N Rate Explanation: INTECO has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying Schedule of Expenditures of Federal Awards includes the Federal grant activity of Iniciativa Tecnológica Centro Oriental, Inc. (Not-For-Profit Organization) (INTECO). The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of INTECO, it is not intended to and does not present the financial position, changes in net assets, or cash flows of INTECO.

Title: SCHEDULE NOT IN AGREEMENT WITH OTHER FEDERAL AWARD REPORTING Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, the cost principles contained in Subpart E of Title 2 U.S. Code of Federal Regulation Part 200, wherein certain types of expenditures are not allowable or are limited as to reimbursement. B. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. C. Pass-through entity identifying numbers are presented where available and applicable De Minimis Rate Used: N Rate Explanation: INTECO has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. The information included in the Schedule may not fully agree with other Federal award reports submitted directly to Federal granting agencies. This is because among other reasons, the award reports (1) may be prepared for a different fiscal period and (2) may include cumulative (from prior years) data rather than data from the current year only.

Title: FEDERAL ASSISTANCE LISTING NUMBER Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, the cost principles contained in Subpart E of Title 2 U.S. Code of Federal Regulation Part 200, wherein certain types of expenditures are not allowable or are limited as to reimbursement. B. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. C. Pass-through entity identifying numbers are presented where available and applicable De Minimis Rate Used: N Rate Explanation: INTECO has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. The Assistance Listing Number, formerly known as the Catalog of Federal Domestic Assistance (CFDA) Number, is a five-digit number assigned in the awarding document for all Federal assistance award mechanisms, including Federal grants and cooperative agreements.

Title: RESTRICTIONS Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, the cost principles contained in Subpart E of Title 2 U.S. Code of Federal Regulation Part 200, wherein certain types of expenditures are not allowable or are limited as to reimbursement. B. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. C. Pass-through entity identifying numbers are presented where available and applicable De Minimis Rate Used: N Rate Explanation: INTECO has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. Each Federal Program has its own use restrictions. Those restrictions are included in the Federal Assistance Listing .