Title: Loan/loan guarantee outstanding balances
Accounting Policies: Note 1: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Lake Forest College (the College) under programs of the federal government for the year ended May 31, 2022. The information in this 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 (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the College, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the College.
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate.
FEDERAL PERKINS LOAN PROGRAM (84.038) - Balances outstanding at the end of the audit period were 1413670.
Title: Note 2 - Basis of Accounting
Accounting Policies: Note 1: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Lake Forest College (the College) under programs of the federal government for the year ended May 31, 2022. The information in this 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 (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the College, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the College.
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate.
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, 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 College has elected to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance.
Title: Note 3 - Federal Government Student Loan Programs
Accounting Policies: Note 1: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Lake Forest College (the College) under programs of the federal government for the year ended May 31, 2022. The information in this 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 (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the College, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the College.
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate.
The Federal Perkins Loan Program is administered directly by the College, and balances and transactions relating to this program are included in the Colleges financial statements. No new loans are allowed to be issued, therefore, the collections received on past loans including interest will be held until the liquidation process occurs and the final federal share of the remaining Federal Perkins Loan Program cash is remitted to the Department of Education. The beginning balance on these loans is disclosed in the Schedule. The balance of the loans outstanding under the Federal Perkins Loan Program was $1,413,670 as of May 31, 2022.The College is responsible only for the performance of certain administrative duties with respect to the Federal Direct Loan Program (FDL). Accordingly, these loans are not included in the Colleges financial statements and it is not practical to determine the balance of loans outstanding to students and former students of the College under this program as of May 31, 2022.
Title: Note 4 - Reconciliation of the Schedule of Expenditures of Federal Awards t
Accounting Policies: Note 1: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Lake Forest College (the College) under programs of the federal government for the year ended May 31, 2022. The information in this 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 (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the College, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the College.
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate.
Net assets with donor restrictions, derived from federal aid, gifts, or grants, may be used only to meet expenses for the purposes specifically identified by sponsoring agencies. Federal aid, gifts, or grants are recognized as Government grants revenue in the Colleges financial statements as expended.The following is a reconciliation of total expenditures reported on the accompanying Schedule to the revenue items shown as Government grants revenue on the Statement of Activities included in the Colleges financial statements. For financial statement purposes, Pell grants are not reflected in the statement of activities.The College records Pell grants and Perkins and Federal Direct Loans received by students through the College as intermediary transactions, and not grants. Therefore, these expenditures are presented below as federal funds for student financial assistance but are not reported as expenditures of the College. These expenditures are subtracted from the total expenditures on the schedule of expenditures of federal awards to agree with revenue on the statement of activities.The Higher Education Emergency Relief Fund (HEERF) grant program provides financial aid to students and higher education institutions to help with new expenses and revenue losses associated with the COVID-19 pandemic. The program was created by Congress as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act in March 2020, and received additional funding from the Coronavirus Response and Relief Supplemental Appropriations Act (CRRSAA) in December 2020 and the American Rescue Plan Act (ARPA) in March 2021. The College was awarded $1,546,268 by HEERF in fiscal year 2020, $2,375,182 by CRRSAA in fiscal year 2021, and $4,189,300 by ARPA in fiscal year 2021. Under the legislation, a portion of these grants must be used for direct emergency aid to students. The remaining portion must be used by institutions to cover costs associated with significant changes to the delivery of instruction due to the coronavirus or lost revenue. As of May 31, 2022 and 2021, the College issued $1,013,255 and $1,961,383 of emergency aid to its students, respectively. For the year ended May 31, 2021, the College applied the $3,596,697 institutional portion to its room and board lost revenue. For the year ended May 31, 2022, the College applied the remaining $100,000 institutional portion to additional room lost revenue, monitor and suppress coronavirus on campus and conduct direct outreach to financial aid applicants about the opportunity to receive a financial aid adjustment. At May 31, 2022 and 2021, $0 and $913,255 of the institutional portion is recorded as deferred revenue in other liabilities on the statement of financial position, respectively. The revenue was recognized when the College issues the remaining emergency aid directly to its students.