Audit 47379

Accounting Policies: 1.BASIS OF PRESENTATIONThe accompanying schedule of expenditures of federal awards presents the activities in all the federal award programs of Boricua College and Subsidiaries (Boricua) for the year ended June 30, 2022. All financial awards received directly from federal agencies as well as financial awards passed through other governmental agencies or non-profit organizations are included on the schedule and are presented in accordance with the requirements of Uniform Guidance. Because the schedule presents only a selected portion of the operations of the Boricua, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Boricua.2.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESThe accompanying schedule of expenditures of federal awards is presented using the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Guidance wherein certain types of expenditures are not allowable or are limited to reimbursement. The amounts reported in this schedule as expenditures may differ from certain financial reports submitted to funding agencies due to those reports being submitted on either a cash or modified accrual basis of accounting.3.FEDERAL DIRECT STUDENT LOAN PROGRAMBoricua is responsible only for the performance of certain administrative duties with respect to the Federal Direct Student Loan Program and, accordingly, these loans are not included in its basic consolidated financial statements. Loan amounts included in the schedule of expenditures of federal awards represent only new loans advanced in the current year. It is not practical to determine the balance of loans outstanding to students of Boricua under these programs at June 30, 2022.4.INDIRECT COSTSBoricua College does not have a federally negotiated indirect cost rate on its federal contracts and Boricua College has not made an election pursuant to 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards to receive a 10% de minimis cost rate. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.