Title: 3 Federal Perkins Loan Program
Accounting Policies: The accompanying schedule of expenditures of federal awards and state projects (the Schedule) includes the federal award and state project activity of Embry-Riddle Aeronautical University, Inc. (the University) under programs of the federal government and State of Florida for the year ended June 30, 2022. The information in the schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (the Uniform Guidance) and Chapter 10.650, Rules of the Florida Auditor General. Because the Schedule presents only a selected portion of the operations of the University, it is notintended to and does not present the financial position, changes in net assets, or cash flows of the University. The reimbursement of costs reflected in the accompanying financial statements as grants and contracts revenue is subject to final approval by federal and state grantors and could be adjusted upon the results ofthese reviews. Management believes that the results of any such adjustment will not be material to the Universitys financial position or change in net assets.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate. Summary of Significant Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance and Chapter 10.650, Rules of the Florida Auditor General, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. The University has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
The University administers the Federal Perkins Loan Program. The amount included in the Schedule includes the outstanding balance as of June 30, 2021 of $6,680,861. The outstanding balance of loans receivable under this program was $4,819,949 at June 30, 2022, which includes cancellations of $37,231, assignments of $481,650 and collections on principal of $1,341,991.As required by Uniform Guidance, the amount shown on the Schedule as expenditures for the PerkinsLoan Program is equal to the balance of loans outstanding at June 30, 2021. Under federal law, thePerkins Loan Program ended on September 30, 2017, and final disbursements under the program werepermitted through June 30, 2018.
Title: 4 Federal Direct Student Loans Program
Accounting Policies: The accompanying schedule of expenditures of federal awards and state projects (the Schedule) includes the federal award and state project activity of Embry-Riddle Aeronautical University, Inc. (the University) under programs of the federal government and State of Florida for the year ended June 30, 2022. The information in the schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (the Uniform Guidance) and Chapter 10.650, Rules of the Florida Auditor General. Because the Schedule presents only a selected portion of the operations of the University, it is notintended to and does not present the financial position, changes in net assets, or cash flows of the University. The reimbursement of costs reflected in the accompanying financial statements as grants and contracts revenue is subject to final approval by federal and state grantors and could be adjusted upon the results ofthese reviews. Management believes that the results of any such adjustment will not be material to the Universitys financial position or change in net assets.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate. Summary of Significant Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance and Chapter 10.650, Rules of the Florida Auditor General, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. The University has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
The University participated in the Federal Direct Student Loans Program beginning in May 2010 (which includes subsidized Stafford loans, unsubsidized Stafford loans and Plus loans). Such programs are considered a component of the Student Financial Assistance Cluster. New loans processed for students during the year ended June 30, 2022 were $90,933,043 consisting of Federal Direct Loans of $16,690,234, Federal Direct Unsubsidized Loans of $28,373,791, Federal Direct Parent PLUS Loans of$44,451,859, Federal Direct Graduate PLUS Loans of $880,810, and Federal Direct Flight PLUS Loans of $536,349.
Title: 5 Matching
Accounting Policies: The accompanying schedule of expenditures of federal awards and state projects (the Schedule) includes the federal award and state project activity of Embry-Riddle Aeronautical University, Inc. (the University) under programs of the federal government and State of Florida for the year ended June 30, 2022. The information in the schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (the Uniform Guidance) and Chapter 10.650, Rules of the Florida Auditor General. Because the Schedule presents only a selected portion of the operations of the University, it is notintended to and does not present the financial position, changes in net assets, or cash flows of the University. The reimbursement of costs reflected in the accompanying financial statements as grants and contracts revenue is subject to final approval by federal and state grantors and could be adjusted upon the results ofthese reviews. Management believes that the results of any such adjustment will not be material to the Universitys financial position or change in net assets.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate. Summary of Significant Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance and Chapter 10.650, Rules of the Florida Auditor General, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. The University has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
Under the Federal Work-Study Program, the University matched $137,965 in total compensation for the year ended June 30, 2022, in addition to the federal share of expenditures included in the accompanying Schedule. Under the Federal Supplemental Educational Opportunity Grant Program, the University matched $528,597 in funds awarded to students for the year ended June 30, 2022, in addition to the federal share of expenditures included in the accompanying Schedule.
Title: 6 Administrative Cost Allowance
Accounting Policies: The accompanying schedule of expenditures of federal awards and state projects (the Schedule) includes the federal award and state project activity of Embry-Riddle Aeronautical University, Inc. (the University) under programs of the federal government and State of Florida for the year ended June 30, 2022. The information in the schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (the Uniform Guidance) and Chapter 10.650, Rules of the Florida Auditor General. Because the Schedule presents only a selected portion of the operations of the University, it is notintended to and does not present the financial position, changes in net assets, or cash flows of the University. The reimbursement of costs reflected in the accompanying financial statements as grants and contracts revenue is subject to final approval by federal and state grantors and could be adjusted upon the results ofthese reviews. Management believes that the results of any such adjustment will not be material to the Universitys financial position or change in net assets.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate. Summary of Significant Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance and Chapter 10.650, Rules of the Florida Auditor General, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. The University has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
The University claimed an administrative cost allowance of $138,524 for the year ended June 30, 2022. This amount is included in the accompanying Schedule as federal expenditures under the Federal Work-Study Program.
Title: 8 State License Plate
Accounting Policies: The accompanying schedule of expenditures of federal awards and state projects (the Schedule) includes the federal award and state project activity of Embry-Riddle Aeronautical University, Inc. (the University) under programs of the federal government and State of Florida for the year ended June 30, 2022. The information in the schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (the Uniform Guidance) and Chapter 10.650, Rules of the Florida Auditor General. Because the Schedule presents only a selected portion of the operations of the University, it is notintended to and does not present the financial position, changes in net assets, or cash flows of the University. The reimbursement of costs reflected in the accompanying financial statements as grants and contracts revenue is subject to final approval by federal and state grantors and could be adjusted upon the results ofthese reviews. Management believes that the results of any such adjustment will not be material to the Universitys financial position or change in net assets.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate. Summary of Significant Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance and Chapter 10.650, Rules of the Florida Auditor General, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. The University has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
The University has entered into an agreement with the State of Floridas Department of Highway Safety and Motor Vehicles to issue University specialty license plates through the Embry-Riddle Aeronautical College License Plate Project (CSFA No. 76.045). Revenue generated by this project is remitted to the University by the State and is placed into an endowed scholarship fund. The earnings from this fund are used to award scholarships to deserving students. The total funds received and accumulated unspent earnings at July 1, 2021, amounted to $869,924. During the fiscal year ended June 30, 2022, the University received $41,173 in additional funds from the State of Florida, recognized interest of $31,423, recognized a net loss of $134,846, recognized management fees of $3,358 and scholarships awarded of $45,474. The balance of the funds remaining in the endowment fund from the project at June 30, 2022, is $758,842.
Title: 9 COVID 19 HEERF Education Stabilization Fund - Institutional Portion
Accounting Policies: The accompanying schedule of expenditures of federal awards and state projects (the Schedule) includes the federal award and state project activity of Embry-Riddle Aeronautical University, Inc. (the University) under programs of the federal government and State of Florida for the year ended June 30, 2022. The information in the schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (the Uniform Guidance) and Chapter 10.650, Rules of the Florida Auditor General. Because the Schedule presents only a selected portion of the operations of the University, it is notintended to and does not present the financial position, changes in net assets, or cash flows of the University. The reimbursement of costs reflected in the accompanying financial statements as grants and contracts revenue is subject to final approval by federal and state grantors and could be adjusted upon the results ofthese reviews. Management believes that the results of any such adjustment will not be material to the Universitys financial position or change in net assets.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate. Summary of Significant Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance and Chapter 10.650, Rules of the Florida Auditor General, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. The University has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
The amounts presented in the accompanying Schedule of Expenditures of Federal Awards and State Projects for the institutional portion of the Higher Education Emergency Relief Fund are based on actual expenditures incurred and may be different from the amounts recorded as revenue in the consolidated financial statements due to the matching requirements of the program.