Notes to SEFA
Title: NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES FOR FEDERAL AWARD EXPENDITURES
Accounting Policies: NOTE 1 - BASIS OF PRESENTATION
The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) presents the expenditures of The Catholic University of America and subsidiaries (the “University”) incurred under federal award programs for the year ended April 30, 2023, and is presented in accordance with the provisions 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 portion of the operations of the University, it is not intended to and does not present the financial position and changes in net assets of the University.
For purposes of preparing the Schedule, federal awards include all grants, contracts, and similar agreements entered into directly between the University and agencies and departments of the federal government and all subawards to the University by non-federal organizations pursuant to federal grants, contracts and similar agreements. Negative amounts in the Schedule represent adjustments to amounts previously reported in the normal course of business. Specific assistance listing and pass-through numbers are included in the Schedule when available.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
Expenditures for federal student financial aid programs are recognized as incurred and include Pell program grants to students, the federal share of students’ Federal Supplemental Educational Opportunity Grant (“FSEOG”) program grants and the federal share of Federal Work Study (“FWS”) program earnings, loan disbursements, and administrative cost allowances, where applicable.
Expenditures for other federal awards are determined using the cost accounting principles and procedures set forth in Title 2 U.S. Code of Federal Regulations Part 220, Cost Principles for Educational Institutions or the cost principles contained in the Uniform Guidance, as applicable. Under these cost principles, certain types of expenditures are not allowable or are limited as to reimbursement. Direct costs are recognized as incurred, using the accrual basis of accounting.
Expenditures for non-financial aid awards include indirect costs, relating primarily to facilities operation and maintenance and general administration services, which are allocated to direct cost objectives (including federal award programs) based on negotiated formulas commonly referred to as indirect cost rates. Indirect costs allocated to such awards for the year ended April 30, 2023 were based on predetermined rates negotiated with the University’s cognizant federal agency, the U.S. Department of Health and Human Services. As such, the University is not eligible to use the 10% de minimus indirect cost rate allowed under the Uniform Guidance.
Title: NOTE 3 - FEDERAL STUDENT LOAN PROGRAMS
Accounting Policies: NOTE 1 - BASIS OF PRESENTATION
The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) presents the expenditures of The Catholic University of America and subsidiaries (the “University”) incurred under federal award programs for the year ended April 30, 2023, and is presented in accordance with the provisions 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 portion of the operations of the University, it is not intended to and does not present the financial position and changes in net assets of the University.
For purposes of preparing the Schedule, federal awards include all grants, contracts, and similar agreements entered into directly between the University and agencies and departments of the federal government and all subawards to the University by non-federal organizations pursuant to federal grants, contracts and similar agreements. Negative amounts in the Schedule represent adjustments to amounts previously reported in the normal course of business. Specific assistance listing and pass-through numbers are included in the Schedule when available.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The Federal Perkins (Assistance Listing 84.038), Nurse Faculty (Assistance Listing 93.264) and Nurse Faculty - ARRA (Assistance Listing 93.408) loan programs are administered directly by the University and the balances and transactions relating to these programs are included in the University’s basic consolidated financial statements. Loans outstanding at the beginning of the year and loans made during the year are included in federal expenditures presented on the Schedule. The balance of loans outstanding under these programs at April 30, 2023 are as follows:
See the Notes to the SEFA for chart/table.
The University is responsible only for the performance of certain administrative duties with respect to the Federal Direct Loan Program and, accordingly, these loans are not included in its basic consolidated financial statements. It is not practical to determine the balance of loans outstanding to students and former students of the University under this program at April 30, 2023.