Audit 363965

Title: Note 1 - Basis of presentation Accounting Policies: a. The Schedule is prepared from the Authority’s accounting records. b. The financial transactions are recorded by the Authority in accordance with the terms and conditions of the grants, which are consistent with the accounting principles generally accepted in the United States of America. c. Expenditures are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. d. The Authority does not use the 10-percent de minimis indirect cost rate, as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The Authority does not use the 10-percent de minimis indirect cost rate, as allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of the Puerto Rico Ports Authority (the Authority) under programs of the federal government for the year ended June 30, 2023. 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). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the Authority’s financial statements. Because the Schedule presents only a selected portion of the operations of the Authority, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Authority.

Title: Note 2 - Summary of significant accounting policies Accounting Policies: a. The Schedule is prepared from the Authority’s accounting records. b. The financial transactions are recorded by the Authority in accordance with the terms and conditions of the grants, which are consistent with the accounting principles generally accepted in the United States of America. c. Expenditures are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. d. The Authority does not use the 10-percent de minimis indirect cost rate, as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The Authority does not use the 10-percent de minimis indirect cost rate, as allowed under the Uniform Guidance. a. The Schedule is prepared from the Authority’s accounting records. b. The financial transactions are recorded by the Authority in accordance with the terms and conditions of the grants, which are consistent with the accounting principles generally accepted in the United States of America. c. Expenditures are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. d. The Authority does not use the 10-percent de minimis indirect cost rate, as allowed under the Uniform Guidance.

Title: Note 3 - Assistance listing number Accounting Policies: a. The Schedule is prepared from the Authority’s accounting records. b. The financial transactions are recorded by the Authority in accordance with the terms and conditions of the grants, which are consistent with the accounting principles generally accepted in the United States of America. c. Expenditures are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. d. The Authority does not use the 10-percent de minimis indirect cost rate, as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The Authority does not use the 10-percent de minimis indirect cost rate, as allowed under the Uniform Guidance. The Assistance Listing Numbers (ALN) included in this Schedule are determined based on the program name, review of grant contract information and public descriptions of federal listings published by the U.S. Government on sam.gov. Assistance listing numbers are presented for those programs for which such numbers were available.

Title: Note 4 - Program costs Accounting Policies: a. The Schedule is prepared from the Authority’s accounting records. b. The financial transactions are recorded by the Authority in accordance with the terms and conditions of the grants, which are consistent with the accounting principles generally accepted in the United States of America. c. Expenditures are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. d. The Authority does not use the 10-percent de minimis indirect cost rate, as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The Authority does not use the 10-percent de minimis indirect cost rate, as allowed under the Uniform Guidance. The amounts shown as federal expenditures represent only the federal grant portion of the program costs.