HDMI Output?

I am using a PC that has HDMI output on the motherboard, to a Emotiva UMC-1 preamp. I use it for both audio and video playback. In this configuration, where is the D/A function being done? Is that the 'right' place for best audio results? Suggested improvements?
In the UMC-1 since all the signals on the HDMI are digital.
Yes it is the best, as the Dac in the UMC-1 is gonna be better than in the computer.