The accompanying Schedule of Expenditures of Federal Awards (“Schedule” or “SEFA”) is presented using the accrual basis of accounting. In accordance with 2 CFR §200.510(b), the Schedule of Expenditures of Federal Awards (SEFA) must accurately reflect the total federal awards expended for each federal program, including consideration of any necessary adjustments related to differences identified from prior periods. Any such changes are required to be appropriately disclosed in the notes to the SEFA. During the current fiscal year, the University identified and recorded an adjustment reducing expenditures reported on the SEFA for the Education Stabilization Fund programs (Assistance Listings 84.425E, 84.425F, and 84.425L) in the approximate amount of $2.3 million. The adjustment was recorded in the period in which the difference was identified. Adjustments related to prior periods differences are generally recognized in the period in which they are identified. As the SEFA represents supplementary information rather than a primary financial statement, reflecting the impact of this adjustment in the current-year SEFA is considered appropriate. The accompanying Schedule of Expenditures of Federal Awards (“Schedule” or “SEFA”) is presented using the accrual basis of accounting. Expenditures awarded from the Federal Emergency Management Agency (FEMA) under Assistance Listing 97.036 are included in the Schedule when FEMA approves the related Project Worksheet (PW) and eligible expenditures are incurred. During the fiscal year ended June 30, 2025, the University of Puerto Rico accounted for $517,852 of eligible expenditures incurred in prior years related to FEMA project worksheets approved during the current fiscal year.
Matching costs, such as the nonfederal share of certain program costs, are not included in the accompanying Schedule.
The regulations and guidelines governing the preparation of federal financial reports vary by federal agency and among programs administered by the same agency. Accordingly, the amounts reported in the federal financial reports do not necessarily agree with the amounts reported in the accompanying schedule, which is prepared on the basis of accounting explained in Note 2. Office of Management and Budget (“OMB”) Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (“Uniform Guidance”) require that federal financial reports for claims for advances and reimbursements contain information that is supported by the books and records from which the basic financial statements have been prepared. The University prepares the federal financial reports and claims for reimbursements primarily based on information from the internal accounting records of the respective Campuses of the University.
Federal awards revenues and expenses are reported in the University’s statement of revenues, expenses and changes in net position in accordance with standards issued by the Government Accounting Standards Board (“GASB”) No. 35, as amended. Because the Schedule of Expenditures of Federal Awards presents only federal activities of the University, it is not intended to and does not present the financial position, assets, liabilities, net position, revenues, expenses, changes in net position, and cash flows of the University, as a whole.
Uniform Guidance defines a cluster of programs as a grouping of closely related programs that share common compliance requirements. According to this definition, TRIO, Research and Development, Student Financial Assistance, Economic Development, Highway Safety, CDBG-Entitlement Grants, Federal Transit, and CCDF were identified as clusters.
During the fiscal year ending June 30, 2025, the University processed $56,077,636 of new loans under the Federal Direct Student Loans Program (Assistance Listing No. 84.268). Since the University does not make the loans, the new loans made in the fiscal year that ended June 30, 2025, relating to this program are considered current year federal expenditures, whereas the outstanding loan balances are not. The new loans made in the fiscal year ending June 30, 2025, are reported in the Schedule of Expenditures of Federal Awards.
The grant amounts received are subject to audit and adjustment. If any expenditure is disallowed by the grantor agencies as a result of such an audit, any claim for reimbursement to the grantor agencies would become a liability of the University. In the opinion of management, all grant expenditures are in compliance with the terms of the grant agreements and applicable federal laws and regulations.
The University used the ten percent de minimis indirect cost rate allowed by the Uniform Guidance for some units.