he accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of the Inter American University of Puerto Rico, Inc. and Subsidiaries (the University), under programs of the federal government for the year ended June 30, 2025. 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) that are awarded to students are excluded from revenue and expenses in the consolidated financial statements of the University.
Expenditures reported in the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following 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 de minimis indirect cost rate, as allowed under the Uniform Guidance.
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)
Major programs are identified in the Summary of Auditor’s Results Section in the Schedule of Findings and Questioned Costs. Federal programs are presented by federal agency
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, 2025, amounting to $65,486,166, 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 Students Information Record (ISIR), along with other information, is used by the University to originate a student’s loan.
he consolidated financial statements of the University include the following notes payable to the ED as of June 30, 2025, which are not included in the Schedule: Advances under a credit agreement with the U.S. Department of Education, payable in semiannual installments of $14,304, including interest, through January 2030, with interest at 5.50%, and secured by a mortgage note on certain building in the Fajardo campus $123,587 Advances under a credit agreement with the U.S. Department of Education, payable in semiannual installments of $60,569, including interest, through April 2030, with interest at 5.50%, and secured by a mortgage note on certain building in the San Germán campus $523,325 Total $646,912