Title: (3) Summary of Facilities and Administrative Costs and Administrative Cost
Accounting Policies: (1)Basis of PresentationThe accompanying schedule of expenditures of federal awards (the schedule) includes all grants, contracts, and similar agreements entered into directly between Wake Forest University (the University) and agencies and departments of the federal government and all subawards to the University by nonfederal organizations pursuant to federal grants, contracts, and similar agreements and is presented on the accrual basis of accounting. 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 (Uniform Guidance). Therefore, some amounts presented in the schedule may differ from amounts presented in, or used in the preparation of, the consolidated financial statements.The accompanying schedule of expenditures of state awards includes all grants, contracts, and similar agreements entered into directly between the University and agencies and departments of the state government and all subawards to the University by nonfederal organizations pursuant to state grants, contracts, and similar agreements and is presented on the accrual basis of accounting. (2) Summary of Significant Accounting PoliciesExpenditures for certain federal student financial aid programs are recognized as incurred and include the federal share of students Federal Supplemental Educational Opportunity Grant (FSEOG) program grants and Federal Work Study (FWS) program earnings, Pell grants, loan disbursements, and administrative cost allowances, where applicable.Expenditures for other federal awards of the Universitys academic and other divisions are recognized following, as applicable, either the cost principles in OMB Circular A-21, Cost Principles for Educational Institutions, or the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement.Expenditures for non-financial aid awards include indirect costs, related primarily to facilities operation and maintenance and general, divisional, and departmental administrative services, which are allocated to direct cost objectives (including federal awards) based on negotiated formulas commonly referred to as facilities and administrative cost rates. Facilities and administrative costs allocated to such awards for the year ended June 30, 2022 were based on predetermined rates negotiated with the Universitys cognizant federal agency, the U.S. Department of Health and Human Services. The University has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance.Negative balances presented in the schedule represent programs with unfunded expenditures prior to normal close-out procedures, which were subsequently transferred to nonfederal cost centers.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
Facilities and administrative cost recoveries and administrative cost allowances for the Universitys academic and other divisions for the year ended June 30, 2022 are summarized as follows: Research and development $49,633,979 Student financial aid $36,442; Total $49,670,421
Title: (4) Federal Student Financial Aid Loan Programs
Accounting Policies: (1)Basis of PresentationThe accompanying schedule of expenditures of federal awards (the schedule) includes all grants, contracts, and similar agreements entered into directly between Wake Forest University (the University) and agencies and departments of the federal government and all subawards to the University by nonfederal organizations pursuant to federal grants, contracts, and similar agreements and is presented on the accrual basis of accounting. 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 (Uniform Guidance). Therefore, some amounts presented in the schedule may differ from amounts presented in, or used in the preparation of, the consolidated financial statements.The accompanying schedule of expenditures of state awards includes all grants, contracts, and similar agreements entered into directly between the University and agencies and departments of the state government and all subawards to the University by nonfederal organizations pursuant to state grants, contracts, and similar agreements and is presented on the accrual basis of accounting. (2) Summary of Significant Accounting PoliciesExpenditures for certain federal student financial aid programs are recognized as incurred and include the federal share of students Federal Supplemental Educational Opportunity Grant (FSEOG) program grants and Federal Work Study (FWS) program earnings, Pell grants, loan disbursements, and administrative cost allowances, where applicable.Expenditures for other federal awards of the Universitys academic and other divisions are recognized following, as applicable, either the cost principles in OMB Circular A-21, Cost Principles for Educational Institutions, or the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement.Expenditures for non-financial aid awards include indirect costs, related primarily to facilities operation and maintenance and general, divisional, and departmental administrative services, which are allocated to direct cost objectives (including federal awards) based on negotiated formulas commonly referred to as facilities and administrative cost rates. Facilities and administrative costs allocated to such awards for the year ended June 30, 2022 were based on predetermined rates negotiated with the Universitys cognizant federal agency, the U.S. Department of Health and Human Services. The University has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance.Negative balances presented in the schedule represent programs with unfunded expenditures prior to normal close-out procedures, which were subsequently transferred to nonfederal cost centers.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The Federal Perkins Loan, Health Professions Student Loan (HPSL), and the Primary Care Loan (PCL) programs are administered directly by the University and balances and transactions relating to these programs are included in the Universitys consolidated financial statements. There were no current year loaned amounts under the Federal Perkins Loan program, the HSPL or PCL programs. The balance of loans outstanding under the Federal Perkins Loan program was $7,061,520 as of June 30, 2022. There were no loans outstanding for the HPSL and PCL programs as of June 30, 2022.The University disbursed the following amounts of new loans under the Federal Direct Student Loan Program to students of the University during the year ended June 30, 2022: Federal Direct Student Loan Program: Federal subsidized stafford loans $2,212,323 Federal unsubsidized stafford loans 43,107,667 Federal PLUS loans 34,591,320; Total $79,911,310 The University is responsible only for the performance of certain administrative duties with respect to the Federal Direct Student Loan Program and, accordingly, these loans are not included in its basic financial statements. It is not practicable to determine the balance of loans outstanding to students and former students of the University under these programs as of June 30, 2022.
Title: (5) Matching
Accounting Policies: (1)Basis of PresentationThe accompanying schedule of expenditures of federal awards (the schedule) includes all grants, contracts, and similar agreements entered into directly between Wake Forest University (the University) and agencies and departments of the federal government and all subawards to the University by nonfederal organizations pursuant to federal grants, contracts, and similar agreements and is presented on the accrual basis of accounting. 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 (Uniform Guidance). Therefore, some amounts presented in the schedule may differ from amounts presented in, or used in the preparation of, the consolidated financial statements.The accompanying schedule of expenditures of state awards includes all grants, contracts, and similar agreements entered into directly between the University and agencies and departments of the state government and all subawards to the University by nonfederal organizations pursuant to state grants, contracts, and similar agreements and is presented on the accrual basis of accounting. (2) Summary of Significant Accounting PoliciesExpenditures for certain federal student financial aid programs are recognized as incurred and include the federal share of students Federal Supplemental Educational Opportunity Grant (FSEOG) program grants and Federal Work Study (FWS) program earnings, Pell grants, loan disbursements, and administrative cost allowances, where applicable.Expenditures for other federal awards of the Universitys academic and other divisions are recognized following, as applicable, either the cost principles in OMB Circular A-21, Cost Principles for Educational Institutions, or the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement.Expenditures for non-financial aid awards include indirect costs, related primarily to facilities operation and maintenance and general, divisional, and departmental administrative services, which are allocated to direct cost objectives (including federal awards) based on negotiated formulas commonly referred to as facilities and administrative cost rates. Facilities and administrative costs allocated to such awards for the year ended June 30, 2022 were based on predetermined rates negotiated with the Universitys cognizant federal agency, the U.S. Department of Health and Human Services. The University has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance.Negative balances presented in the schedule represent programs with unfunded expenditures prior to normal close-out procedures, which were subsequently transferred to nonfederal cost centers.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
Under the FWS program, the University did not match any compensation to students for the year ended June 30, 2022.Under the FSEOG program, the University matched $236,455 in funds awarded to students for the year ended June 30, 2022 in addition to the federal share of expenditures in the accompanying schedule.