Audit 49286

Accounting Policies: . Basis of presentationThe accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of American College of Puerto Rico, Inc. d/b/a American University of Puerto Rico 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 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 operations of the American College of Puerto Rico, Inc., it is not intended to and does not present the financial position, changes in net assets or cash flows of American College of Puerto Rico, Inc. d/b/a American University of Puerto Rico.2. Summary of significant accounting policiesExpenditures reported on the schedule are reported on the accrual 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 to reimbursement.3. Federal Loan Program The value of loans processed by the University for eligible students under the federal loan program for the year ended June 30, 2022, amounted to $437,041 as presented in the schedule of federal expenditures. 4. Administrative costsThe University does not have a federally negotiated indirect cost rate applicable to the programs and therefore there is no election to the 10 percent de minims cost rate as defined in 2 CFR 200.414. The University charges administration costs pursuant to a separate fiduciary arrangement negotiated with the Office of National Drug Control Policy for the initiatives of the PR/USVI High Intensity Drug Trafficking Areas of 2.5% of the funds administered during the year.5. Assistance Listing Number (ALN) The ALN included in this schedule are determined based on the program name, review of grant contract information and the U.S. Office of Management and Budgets Catalogue of Federal Assistance Listing. 6. Student financial aid Program clusterFor the year ended June 30, 2022 the University received and disbursed $3,177,210 in Title IV Funds of Higher Education Act of 1965 (SFA Cluster Programs); and $437,041 in Federal Direct Students Loans in which the University acts as agent for the recipient. The Uniform Guidance defines a cluster of programs as a grouping of closely related programs that share common compliance requirements. According to this definition, the Student Financial Assistance programs were deemed to be a cluster of programs and were tested accordingly. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.