Audit 17575

Title: Loan/loan guarantee outstanding balances Accounting Policies: Basis of Presentation The accompanying schedule of expenditures of federal awards (the Schedule) presents the activity of all federal financial assistance programs of Berklee College of Music, Inc. (the College). All federal financialassistance received directly from federal agencies is included on the schedule. There was no federalfinancial assistance passed through other government agencies for the year ended May 31, 2022. TheCollege did not pass through any amounts to subrecipients for the year ended May 31, 2022. (2) Basis of Accounting The Schedule is presented on the accrual basis and in accordance with the provisions of Title 2 U.S. Codeof Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and AuditRequirements for Federal Awards (Uniform Guidance). Therefore, some amounts presented in theSchedule may differ from amounts presented in, or used in the preparation of, the financial statements.(3) Federal Perkins Loan Program The College administers the Federal Perkins Loan Program. The amount included on the schedule ofexpenditures of federal awards includes the outstanding balance as of May 31, 2021, of $2,135,772 andthere were no new loans advanced during the fiscal year ended May 31, 2022. The outstanding balance asof May 31, 2022 was $1,878,864. (4) Federal Direct Loan Program During the year ended May 31, 2022, the College processed $47,991,724 of new loans under the FederalDirect Loan Program (which includes Direct Subsidized and Unsubsidized Stafford Loans and DirectParents Loan for Undergraduate Students).With respect to the Federal Direct Loan Program, the College is responsible only for the performance ofcertain administrative duties and, accordingly, these loan balances are not included in the Collegesfinancial statements. It is not practical to determine the balances of loans outstanding from students of theCollege under this program at May 31, 2022. (5) Indirect Cost Rate The College has not elected to utilize the 10% deminimus indirect cost rate allowed under the UniformGuidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. FEDERAL PERKINS LOAN PROGRAM (84.038) - Balances outstanding at the end of the audit period were 1878864.