Audit 22323

Title: Note 3 - Federal Student Loan Programs Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Philadelphia College of Osteopathic Medicine Foundation and its related entities (the Organization) under programs of the federal government 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). Because the Schedule presents only a selected portion of the operations of the Organization, it is not intended to and does not present the consolidated financial position, changes in net assets, or cash flows of the Organization. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principle contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The Organization did no pass any federal awards through to other organizations during the year ended June 30, 2022. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The Organization is responsible only for the performance of certain administrative duties with respect to the Direct Loans and, accordingly, these loans are not included in the Organization's consolidated financial statements and it is not practical to determine the balance of loans outstanding to students and former students of the Organization under these programs. The Organization also participates in and administers the following student loan programs: [see note 3 to SEFA for table] FEDERAL PERINS LOAN PROGRAM (84.038) - balances outstanding at the end of the audit period were 653,071. HEALTH PROFESSIONAL STUDENT LOANS - PRIMARY CARE LOANS (93.342) - balances outstanding at the end of the audit period were 6,012,308. HEALTH PROFESSIONS STUDENT LOANS - LOANS FOR DISADVANTAGED STUDENTS (93.342) - Balances outstanding at the end of the audit period were 1,447,300. The Organization accounts for such loan programs in separate revolving loan funds. As such, the balances and transactions of these loan programs are recorded in the Organization's consolidated financial statements. In accordance with the Uniform Guidance, amounts on the schedule include loans disbursed in the current year and the balance of loans outstanding at the beginning of the year.