Title: (1) Basis of Presentation
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: Existing Negotiated Indirect Cost Rate Agreement
The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of Inter American University of Puerto Rico, Inc. and Subsidiaries (the University), under programs of the federal government for the year ended June 30, 2024.
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 consolidated 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 consolidated financial position, changes in net assets, and cash flows of the University. Certain funds received for Student Financial Assistance Programs (principally Pell Grant) and
COVID-19 Higher Education Emergency Relief Fund (student aid portion) that are awarded to students are excluded from revenue and expenses in the consolidated financial statements of the University.
Title: (2) Summary of Significant Accounting Policies
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: Existing Negotiated Indirect Cost Rate Agreement
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.
Title: (3) Assistance Listing (ALN) 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: Existing Negotiated Indirect Cost Rate Agreement
The Assistance Listing Numbers included in the Schedule are determined based on the program name,
review of grant contract information and the OMB’s Assistance Listing Number (ALN).
Title: (4) 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: Existing Negotiated Indirect Cost Rate Agreement
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: (5) 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: Existing Negotiated Indirect Cost Rate Agreement
The University participates in the Federal Direct Student Loans (Direct Loans) program of the U.S.
Department of Education (ED). 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, 2024 amounting to $64,082,156 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 Student’s Aid Reports (SAR) or
Institutional Student Information Record (ISIR), along with other information, is used by the University to
originate a student’s loan.
Title: (6) 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: Existing Negotiated Indirect Cost Rate Agreement
The consolidated financial statements of the University include the following notes payable to the ED as of
June 30, 2024, which are not included in the Schedule:
"See the Notes to the SEFA for chart/table”