Audit 45958

Accounting Policies: Note 1 - Basis of PresentationThe accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of the Puerto Rico Department of Corrections and Rehabiliatin (the DCR), under programs of the federal government for the year ended June 30, 2022. The information in this Schedule is presented in accordance with the requirements of U.S. Office of Management and Budget and by Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operation of the DCR, it is not intended to and does not present the statement of cash receipts and disbursements of the DCR.Note 2 - Summary of Significant Accounting PoliciesThe Schedule is prepared from the DCRs accounting records and is not intended to present its financial position or the results of its operations. The Schedule is presented in accordance with the cash basis of accounting, under which revenues are recorded when received and expenditures are recorded when paid. The DCR has elected not to use the 10-percent of minimis indirect cost rate as allowed under the Uniform Guidance. Expenditures are reported on the cash basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.Note 3 - Assistance Listing Number (ALN)The Assistance Listing Numbers included in this Schedule are determined based on the program name, review of grant contract information and the public description of federal assistance listing published by the U.S. Government in sam.gov.Note 4 - Relationship to the Financial StatementExpenditures included in the Schedule amounting to $22,961,704 agree with the amounts included in the accompanying statement of cash receipts and disbursements for purposes of federal financial assistance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.