Title: NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Accounting Policies: NOTE 1 - BASIS OF PRESENTATION - The accompanying schedule of expenditures of federal awards (the "Schedule") presents the expenditures of Gallaudet University (the "University") incurred under federal award programs for the year ended September 30, 2022. For purposes of preparing the Schedule, federal awards include all appropriations, grants, and contracts entered into directly between the University and agencies and departments of the federal government, and pass-through awards from non-federal organizations made under federally sponsored agreements. The awards are classified into program/cluster categories, in accordance with the provisions of the Title 2 U.S. Code of Federal Regulations ("CFR") Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards ("Uniform Guidance"), as described below. Federal Appropriations - The University's federal appropriations include direct appropriations from the U.S. Congress under the Education of the Deaf Act ("EDA" or the "Act") and related amendments for the operation of the University and the Clerc Center. The appropriation also contains a provision for a partnership between the Clerc Center and the Alabama Institute for Deaf and Blind ("AIDB") known as the Regional Early Acquisition of Language ("REAL") Project, which is designed to provide support to deaf children in nine southeastern states from birth through the age of three. For the year ended September 30, 2022, the University's total expenses under the appropriation totaled $157.5 million, of which approximately $103.7 million was spent on University operations, $14.3 million was spent on COVID-19 related-expenses, approximately $36.1 million was spent on Clerc Center operations, and $3.4 million was spent on the REAL partnership. Under 20 U.S. Code ?4353, the University's appropriation is subject to various compliance requirements. These include requirements related to: annual financial and compliance audits; limitations on the use of proceeds from any disposal of real property; Davis-Bacon Act; requirements related to the federal endowment program; international student tuition rates; and specified categories of unallowable and restricted uses of appropriated funds. These provisions are contained in Sections 102, 105, 203, 207, and 210 of the EDA. The University is also subject to requirements described in the Uniform Guidance, which are generally applicable to the University's direct federal appropriation under Section 212(a) of the EDA, as amended, 20 U.S.C. ?4360a(a), with the exception of the cost principles provision outlined in 2 CFR Part 200, Subpart E. The University's federal appropriation, which is subject to the compliance provisions described above, was audited as a major program for the year ended September 30, 2022. Accordingly, the University's compliance, with respect to these provisions, was subjected to the scope of the audit for the year ended September 30, 2022.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
Basis of Accounting - The Schedule has been prepared on the accrual basis of accounting, as further described under Federal Expenditures below. Federal Expenditures - Expenditures for direct appropriations from the U.S. Congress are based on the amounts appropriated for the University and Clerc Center programs for the year ended September 30, 2022, and include expenses necessary for the operation of these programs. Expenditures for federal student financial aid programs are recognized as incurred and include Pell program grants to students, the federal share of students FSEOG program grants and FWS program earnings, loans to students under certain federal student loan programs, certain other federal financial assistance grants for students, and administrative cost allowances, where applicable. Expenditures for research and development and all other federal awards of the University are recognized as incurred and are based on the cost accounting principles and procedures set forth in the Uniform Guidance, as applicable to each grant. Under these cost principles, certain expenditures are not allowable or are limited as to reimbursement. Expenditures for nonfinancial aid awards include indirect costs, relating primarily to facilities operation and maintenance, and general, divisional, and departmental administration services which are allocated to direct cost objectives based on negotiated formulas commonly referred to as indirect cost rates. Indirect costs allocated to such awards for the year ended September 30, 2022, were based on predetermined rates negotiated with the University's cognizant federal agency, the U.S. Department of Health and Human Services ("DHHS"). Therefore, the University has not elected to use the 10% de minimus cost rate as provided by 2 CFR ?200.414 Indirect (F&A) costs. In fiscal year 2022, Gallaudet University students received approximately $12 million in federal vocational-rehabilitation grants from their respective state governments. These amounts are considered vendor payments and accordingly, have been excluded from the Schedule. These grants can be used by the students to offset the cost of tuition, room, board, books and supplies, and other costs associated with attending the University. Pass-Through Awards - The University is the subrecipient of federal funds passed through from certain non-federal organizations. These awards are included in the Schedule and have been separately identified.
Title: NOTE 3 - FEDERAL STUDENT LOAN PROGRAMS
Accounting Policies: NOTE 1 - BASIS OF PRESENTATION - The accompanying schedule of expenditures of federal awards (the "Schedule") presents the expenditures of Gallaudet University (the "University") incurred under federal award programs for the year ended September 30, 2022. For purposes of preparing the Schedule, federal awards include all appropriations, grants, and contracts entered into directly between the University and agencies and departments of the federal government, and pass-through awards from non-federal organizations made under federally sponsored agreements. The awards are classified into program/cluster categories, in accordance with the provisions of the Title 2 U.S. Code of Federal Regulations ("CFR") Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards ("Uniform Guidance"), as described below. Federal Appropriations - The University's federal appropriations include direct appropriations from the U.S. Congress under the Education of the Deaf Act ("EDA" or the "Act") and related amendments for the operation of the University and the Clerc Center. The appropriation also contains a provision for a partnership between the Clerc Center and the Alabama Institute for Deaf and Blind ("AIDB") known as the Regional Early Acquisition of Language ("REAL") Project, which is designed to provide support to deaf children in nine southeastern states from birth through the age of three. For the year ended September 30, 2022, the University's total expenses under the appropriation totaled $157.5 million, of which approximately $103.7 million was spent on University operations, $14.3 million was spent on COVID-19 related-expenses, approximately $36.1 million was spent on Clerc Center operations, and $3.4 million was spent on the REAL partnership. Under 20 U.S. Code ?4353, the University's appropriation is subject to various compliance requirements. These include requirements related to: annual financial and compliance audits; limitations on the use of proceeds from any disposal of real property; Davis-Bacon Act; requirements related to the federal endowment program; international student tuition rates; and specified categories of unallowable and restricted uses of appropriated funds. These provisions are contained in Sections 102, 105, 203, 207, and 210 of the EDA. The University is also subject to requirements described in the Uniform Guidance, which are generally applicable to the University's direct federal appropriation under Section 212(a) of the EDA, as amended, 20 U.S.C. ?4360a(a), with the exception of the cost principles provision outlined in 2 CFR Part 200, Subpart E. The University's federal appropriation, which is subject to the compliance provisions described above, was audited as a major program for the year ended September 30, 2022. Accordingly, the University's compliance, with respect to these provisions, was subjected to the scope of the audit for the year ended September 30, 2022.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The Federal Perkins Loan Program is administered directly by the University, and balances and transactions relating to this program are included in the University's basic financial statements. The activities and balances consist of the following: See Notes to the SEFA for chart/table. The University is responsible only for the performance of certain administrative duties with respect to the federally guaranteed student loan programs, particularly the Direct Loan programs, and accordingly, these loans are not included in its basic financial statements. It is not practical to determine the balance of loans outstanding to students and former students of the University under these federally guaranteed programs at September 30, 2022.
Title: NOTE 4 - CLERC CENTER NATIONAL MISSION AND SHARED EXPENSES
Accounting Policies: NOTE 1 - BASIS OF PRESENTATION - The accompanying schedule of expenditures of federal awards (the "Schedule") presents the expenditures of Gallaudet University (the "University") incurred under federal award programs for the year ended September 30, 2022. For purposes of preparing the Schedule, federal awards include all appropriations, grants, and contracts entered into directly between the University and agencies and departments of the federal government, and pass-through awards from non-federal organizations made under federally sponsored agreements. The awards are classified into program/cluster categories, in accordance with the provisions of the Title 2 U.S. Code of Federal Regulations ("CFR") Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards ("Uniform Guidance"), as described below. Federal Appropriations - The University's federal appropriations include direct appropriations from the U.S. Congress under the Education of the Deaf Act ("EDA" or the "Act") and related amendments for the operation of the University and the Clerc Center. The appropriation also contains a provision for a partnership between the Clerc Center and the Alabama Institute for Deaf and Blind ("AIDB") known as the Regional Early Acquisition of Language ("REAL") Project, which is designed to provide support to deaf children in nine southeastern states from birth through the age of three. For the year ended September 30, 2022, the University's total expenses under the appropriation totaled $157.5 million, of which approximately $103.7 million was spent on University operations, $14.3 million was spent on COVID-19 related-expenses, approximately $36.1 million was spent on Clerc Center operations, and $3.4 million was spent on the REAL partnership. Under 20 U.S. Code ?4353, the University's appropriation is subject to various compliance requirements. These include requirements related to: annual financial and compliance audits; limitations on the use of proceeds from any disposal of real property; Davis-Bacon Act; requirements related to the federal endowment program; international student tuition rates; and specified categories of unallowable and restricted uses of appropriated funds. These provisions are contained in Sections 102, 105, 203, 207, and 210 of the EDA. The University is also subject to requirements described in the Uniform Guidance, which are generally applicable to the University's direct federal appropriation under Section 212(a) of the EDA, as amended, 20 U.S.C. ?4360a(a), with the exception of the cost principles provision outlined in 2 CFR Part 200, Subpart E. The University's federal appropriation, which is subject to the compliance provisions described above, was audited as a major program for the year ended September 30, 2022. Accordingly, the University's compliance, with respect to these provisions, was subjected to the scope of the audit for the year ended September 30, 2022.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The amendments to the Education of the Deaf Act in 1992 and the University's agreement with the U.S. Department of Education for the operation of the Clerc Center program call for separate reporting of expenses for activities carried out in support of the national mission and for central support services shared by the University and Clerc Center programs. Centralized support services include academic support, institutional support, and student services. The proportions of these shared services that are attributed to the Clerc Center program are estimated according to the following procedures: ? Academic and institutional support charges are determined as a percentage of the total institutional costs for these activities pro-rated between the University and Clerc Center programs on the basis of total student enrollments and employees in the two programs. ? Student services are based on the proportion of student health services activities for Clerc Center students. During fiscal 2022, the costs of central services allocated to Clerc Center programs, estimated as described above, were as follows: See Notes to the SEFA for chart/table. For the year ended September 30, 2022, expenses for national mission programs totaled $22,947,635 or approximately 53.7% of total Clerc Center program expenses, while expenses for school operations totaled $19,820,914 or approximately 46.3% of the total. See Notes to the SEFA for chart/table.