Audit 1682

Title: Note 1. Basis of Presentation Accounting Policies: Expenditures reported on the Schedule are recognized on the accrual basis of accounting. Such expenditures are reported following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: UWS has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity from the University of Western States ("UWS") under programs of the federal government for the period from July 1, 2022 to January 31, 2023. The information in this Schedule is presented in accordance with the requirements of Title 2, U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of UWS, it is not intended to and does not present the financial position, changes in net assets, or cash flows for UWS. No funds were identified as having been provided to subrecipients by UWS, and accordingly, no funds identified in the Schedule are attributable to subrecipient entities. There were no federal awards expended for non-cash assistance or insurance at period end.

Title: Note 4. Federal Student Loan Program Accounting Policies: Expenditures reported on the Schedule are recognized on the accrual basis of accounting. Such expenditures are reported following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: UWS has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance The federal student loan program listed below is administered directly by UWS and balances and transactions related to this program are included in UWS's financial statements. Loans outstanding at the beginning of the period and loans made during the period from July 1, 2022 to Janaury 31, 2023 are included in the federal expenditures presented in the Schedule. The balance os loans outstanding at January 31, 2023 consists of: Federal Perkins Loans, 84.038, 751,643 On October 1, 2017, the Federal Perkins Extension Act of 2015 expired and no longer permits disbursements to students of any kind after June 30, 2018. UWS has been notified the government will begin collecting the Federal share of UWS's Perkins Loan Revolving Funds in the future. During the period from July 1, 2022 to January 31, 2023, UWS issued new loans to students under the Federal Direct Student Loan Program (FDLP). The loan program includes subsidized and unsubsidized Staff Loans, Parent PLUS Loans, and PLUS loans for graduate and professional students. The value of loans issued for the FDLP is based on disbursed amounts. The loan amounts issued during the period from July 1, 2022 to January 31, 2023 are disclosed in the Schedule. UWS is responsible only for the performance of certain administrative duties with respect to then federally guaranteed student loans programs and accordingly, balances and transactions relating to these loan programs are not included in UWS's consolidated financial statements. Therefore, it is not practicable to determine the balance of loans outstanding to students and former students at UWS at January 31, 2023.