Notes to SEFA
Title: Loan/loan guarantee outstanding balances
Accounting Policies: 1. Basis Of PresentationThe accompanying Schedule of Expenditures of Federal Awards (the Schedule)presents the activity of all federal award programs of Fontbonne University (theUniversity) for the year ended June 30, 2022. The information on the Schedule ispresented in accordance with the requirements of Title 2 U.S. Code of FederalRegulations Part 200, Uniform Administrative Requirements, Cost Principles, andAudit Requirements for Federal Awards (Uniform Guidance). Therefore, someamounts presented in the Schedule may differ from amounts presented in, or usedin the preparation of, the basic financial statements.For the purpose of the Schedule, federal awards include grants, contracts, loans andloan guarantee agreements entered into directly between the University andagencies and departments of the federal government or passed through othergovernment agencies or other organizations.2. Basis Of AccountingFederal financial assistance revenues from the Federal Work Study and the FederalSupplemental Educational Opportunity Grant programs are reported in theUniversitys financial statements as federal grant revenues. The activity of theFederal Direct Loan Program and Federal Pell Grant programs is not included inthe Universitys financial statements, as the benefits of these programs are awardeddirectly to students and not to the University.Amounts reported in the accompanying Schedule are presented using the accrualbasis of accounting, which is described in Note 1 to the Universitys basic financialstatements. Related federal financial reports are prepared on the cash basis ofaccounting.
De Minimis Rate Used: N
Rate Explanation: The Department of Health and Human Services has approved a maximumprovisional indirect cost rate of 34.0%. The University recovers indirect costs at themaximum rate of 34.0% under federal programs that allow full indirect costreimbursement, and recovers indirect costs at varying rates below 34.0% on otherfederal programs that do not allow full indirect cost recovery.
The University is responsible for the performance of certain administrative dutieswith respect to the Federal Direct Loan Program and, accordingly, it is not practicalto determine the balance of loans outstanding to students and former students of theUniversity under these programs at June 30, 2022. The following schedule represents loans advanced by the University for the yearended June 30, 2022:CFDA AdvancesDepartment of Education:Student Financial Aid Cluster:Federal Perkins Loan Program (FPL) 84.038 $ Federal Direct Loan Program (FDL) 84.268 7 ,184,079$ 7,184,079At June 30, 2022, there was $581,742 outstanding in Federal Perkins Loans.