Audit 53543

Title: 1. BASIS OF PRESENTATION Accounting Policies: 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(1) Expenditures 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 as to reimbursement.(2) Pass-through identifying numbers are presented where available. The Centers have included the names it uses internally for certain grants to facilitate the identification of federal programs by pass-through agencies.(3) Expenditures for federal student financial aid programs are recognized as incurred and include Pell program grants to students and the federal share of students Federal Supplemental Educational Opportunity Grant (FSEOG) program grants wages paid and administrative cost allowances.(4) Expenditures for certain non-student financial aid awards include indirect costs, relating primarily to facilities operation and maintenance, general, divisional, and departmental administrative services, which are allocated to direct cost objectives (including federal award programs) based on negotiated formulas with individual grantors. De Minimis Rate Used: Y Rate Explanation: The auditee used the de minimis cost rate. The Centers has elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards includes the federal grant activity of the Centers and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of the Uniform Guidance. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of federal financial reports and in the combined financial statements, and is not intended to, and does not present, the financial position, changes in net assets, or cash flows of Centros Sor Isolina Ferre, Inc.