The supplemental Schedule of Expenditures of Federal Awards (the Schedule) is prepared on the accrual basis of accounting. Amounts presented are total federal expenditures for each program. The information in the Schedule is presented in accordance with the requirements of the 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). Because the Schedule presents only a selected portion of the operations of the University, it is not intended to, and does not, present the financial position, changes in its net assets and cash flows of the University. Funds received from Student Financial Assistance programs (principally Pell Grant and Direct Loans) and COVID-19 Higher Education Emergency Relief Fund – Student Aid Portion that are awarded to students are excluded from revenue and expenses in the financial statements of the University.
The assistance listing numbers included in the Schedule are determined based on the program name, review of grant contract information and the System for Award Management (SAM).
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. Trio cluster was considered a Type A low-risk program. The percentage coverage of major programs is over 40%.
The University participates in the Federal Direct Student Loan Program (Direct Loans) (ALN 84.268), which includes subsidized and unsubsidized Federal Stafford Loans and Federal PLUS Loans. Under the Direct Loans program, the University is responsible only for certain administrative duties, accordingly, the disbursements under the program and the outstanding loan balance are excluded from the 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, 2025 amounting to $9,296,861 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.
The University received in prior years original grants of $190,000 and $150,000 from the Higher Education Institutional Aid – Strengthening Institutions Program, the Title III Hispanic-Serving Institutions (HSI) STEM and Articulations Programs and the Title V Developing Hispanic- Serving Institutions (HSI), respectively. The grants require 50% of investment income to be added to the original grants. Restriction on the grants expires as follows: $190,000 grant expires through various dates ranging from 2032 to 2034 and $150,000 grant expires through various dates ranging from 2033 to 2034. During the year ended June 30, 2020, the University received an original grant of $150,000 from the 2015 HSI Program Title V Active Learning to Empower Students and Increase Retention and Graduation. Restriction of this grant will expire in the year 2040. Also, during the years ended June 30, 2022, 2023, 2024 and 2025 the University received original grants of $505,843 from the Title V HSI & Articulation Program Culture of Research Achievement at Sagrado (CoRA-Sagrado). Restriction of this grant will expire in 2027. During the year ended June 30, 2025, the University received an original grant of $20,000 from the Title V Higher Education Institutional Aid Program - Sagrado’s Graduate PATHS: Promoting Advancement through Higher Studies in Puerto Rico. Restriction of this grant expires in 2025. At the time these grants expire, the outstanding balances of these endowment funds are no longer restricted and become part of the University’s net assets without donor restriction. During the year ended June 30, 2025, the Higher Education Institutional Aid – Strengthening Institutions Program original contribution of $250,000, was released by the USDE, since it met the requirements for the legislative allowable activity. Those funds are part of the Unrestricted Endowment funds of the University as of June 30, 2025.