Notes to SEFA
Accounting Policies: 1. BASIS OF PRESENTATIONThe accompanying schedule of expenditures of federal awards (the Schedule) presents the activities in allthe federal awards programs of PROMESA. All financial awards received directly from federal agencies aswell as financial awards passed through other governmental agencies or non-profit organizations areincluded on the Schedule. The information in this Schedule is presented in accordance with therequirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements,Cost Principles, and Audit Requirements for Federal Awards ("Uniform Guidance").2. BASIS OF ACCOUNTINGExpenditures reported on the accompanying Schedule are presented using the accrual basis of accounting.Such expenditures are recognized following the cost principles contained in the Uniform Guidance, whereincertain types of expenditures are not allowable or are limited as to reimbursement. The amounts reported inthis schedule as expenditures may differ from certain financial reports submitted to federal funding agenciesdue to those reports being submitted on either a cash or modified accrual basis of accounting.3. RELATIONSHIP TO BASIC CONSOLIDATED FINANCIAL STATEMENTSExpenditures of federal awards are reported on the statement of activities as program services. In certainprograms, the expenditures reported in the basic financial statements may differ from the expendituresreported on the schedule of expenditures of federal awards assistance due to program expendituresexceeding grant or contract budget limitations, matching or in-kind contributions or capitalization policiesrequired under accounting principles generally accepted in the United States of America which are notincluded as federal awards.4. INDIRECT COSTPROMESA has a federally negotiated indirect cost rate for its federal programs as covered in section200.414 in the Uniform Guidance.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.