Notes to SEFA
Accounting Policies: For all Federal programs, Promesa follows generally accepted accounting principles. Federal grant fundsare considered to be earned to the extent of expenditures made under the provisions of the grant, andaccordingly, when such funds are received, they are recorded as deferred revenue until earned. Oncecosts are incurred on reimbursement grants, a receivable from the granting agency is recorded. Grantrevenues are also considered earned upon the purchase of a capital asset. Promesa does not charge indirect costs and has not elected to use the 10% de minimis indirect cost rate as allowed by Uniform Guidance.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.