Audit 51036

Accounting Policies: 1.GeneralThe accompanying Schedule of Expenditures of Federal Awards Program presents the expenditures of the federal programs administered by the Escuela de Artes Plasticas y Dise?o de Puerto Rico (the School).2.Basis of accountingThe accompanying Schedule of Expenditures of Federal Awards Programs is presented using the accrual basis of accounting.3.Administrative costsThe School does not have a federally negotiated indirect cost rate applicable to the programs and therefore there is no election to the 10 percent de minimis cost rate as defined in 2 CFR 200.414.4. 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 Federal Assistance Listing. 5.Relationship to Financial StatementsFederal financial assistance revenues are reported in the School's Statement of Revenues, Expenditures and Changes in Fund Balances as Federal grants for students. The reconciliation of expenses in the Schedule of Expenditures of Federal Awards Programs to the Expenditures in the special revenue fund in the financial statements follows:Expenditures per financial statements$ 2,233,927Plus:Other expenditures 22,379Expenditures per Schedule of Federal Awards Programs $ 2,256,306 De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.