Audit 18174

Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards includes the Federalaward activity of Montserrat College of Art, Inc. (the College) under programs ofthe Federal Government for the year ended June 30, 2022. The information on thisschedule is prepared in accordance with the requirements of Title 2 U.S. Code ofFederal Regulations Part 200, Uniform Administrative Requirements, Cost Principles,and Audit Requirements for Federal Awards ("Uniform Guidance"). Because theschedule presents only a selected portion of the operations of the College, it is notintended to, and does not, present the financial position, changes in net assets, or cashflows of the College.Expenditures reported on the schedule are reportedon the accrual basis of accounting.Such expenditures are recognized following the cost principles contained in Title 2U.S. Code of Federal Regulations Part 200,Uniform Administrative Requirements,Cost Principles, and Audit Requirements for Federal Awards ("Uniform Guidance").During the year ended June 30, 2022, the College processed $2,990,762 of new loansunder the Federal Direct Loan Program (which includes Direct Subsidized andUnsubsidized Stafford Loans and Direct Parent Plus Loan for UndergraduateStudents).With respect to the Federal Direct Loan Program, the College is responsible only forthe performance of certain administrative duties and, accordingly, these loan balancesare not included in the Colleges financial statements. It is not practical to determinethe balances of loans outstanding from students of the College under this program atJune 30, 2022. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.