Audit 25222

Title: Note 3: Federal Student Financial Assistance Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of the University of Massachusetts (the University) under programs of the federal government for the year ended June 30, 2022, with the exception of the University of Massachusetts Global (UMG), which issues a separate audit report in accordance with Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Federal award activity, if any, of UMG, the University of Massachusetts Amherst Foundation, the Worcester City Campus Corporation, the University of Massachusetts Foundation, Inc. and the University of Massachusetts Dartmouth Foundation, Inc., are not included. The information in the Schedule is presented in accordance with the requirements of Uniform Guidance. Because the Schedule presents only a selected portion of the operations of the University, it is not intended to and does not present the net position, changes in net position, or cash flows of the University. 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 asexpenditures in prior years. De Minimis Rate Used: N Rate Explanation: The University applies its predetermined approved facilities and administrative costs to federal awards rather than the 10 percent de minimus cost rate as described in Section 200.414 of the Uniform Guidance. Rates are negotiated with and approved by the Universitys cognizant audit agency, the U.S. Department of Health and Human Services. (a) Student Loan ProgramsThe Perkins Loans, Primary Care Loans, Loans for Disadvantaged Students, Nurse Faculty LoanProgram and the Nursing Student Loans are administered directly by the University and balances andtransactions are included in the Universitys financial statements. Loan activities and balances consistof the following:Assistance Balance BalanceListing as of Loans Payments as ofNumber June 30, 2021 issued received June 30, 2022Perkins Loan Program 84.038 $ 17,413,774 (6,910,632) 10,503,142Health Professions Student Loans 93.342 865,527 188,600 (214,142) 839,985Loans for Disadvantaged Students 93.342 441,885 (40,298) 401,587Nursing Faculty Loans 93.264 5,403,763 623,451 (494,717) 5,532,497Nursing Student Loans 93.264 31,211 2,004 (4,243) 28,972$ 24,156,160 814,055 (7,664,032) 17,306,183 (b) Federal Direct Student LoansThe University is responsible only for the performance of certain administrative duties relating toFederal Direct Student Loans and, accordingly, these loans are not included in the Universitys financialstatements. Federally guaranteed loans distributed to students of the University through the FederalDirect Student Loans Program during the year ended June 30, 2022 are summarized as follows:AssistanceListing LoansNumber distributedFederal Direct Student Loans (FDL) 84.268 $ 267,049,402FDL Parent Loans for Undergraduate Students (PLUS) 84.268 45,985,074Total Federal Direct Student Loans $ 313,034,476