Title: Note 1: Basis of Presentation
Accounting Policies: 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 as expenditures in prior years.
De Minimis Rate Used: Y
Rate Explanation: The College has elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.
The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Lake Forest College (the College) under programs of the federal government for the year ended May 31, 2023. The information in this 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). Because the Schedule presents only a selected portion of the operations of the College, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the College.
Title: Note 3. Federal Government Student Loan Programs
Accounting Policies: 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 as expenditures in prior years.
De Minimis Rate Used: Y
Rate Explanation: The College has elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.
The Federal Perkins Loan Program is administered directly by the College, and balances and transactions relating to this program are included in the College’s financial statements. No new loans are allowed to be issued, therefore, the collections received on past loans including interest will be held until the liquidation process occurs and the final federal share of the remaining Federal Perkins Loan Program cash is remitted to the Department of Education. The beginning balance on these loans is disclosed in the Schedule. The balance of the loans outstanding under the Federal Perkins Loan Program was $778,326 as of May 31, 2023.
The College is responsible only for the performance of certain administrative duties with respect to the Federal Direct Loan Program. Accordingly, these loans are not included in the College’s financial statements and it is not practical to determine the balance of loans outstanding to students and former students of the College under this program as of May 31, 2023.
Title: Note 4. Reconciliation of the Schedule of Expenditures of Federal Awards to the Statement of Activities
Accounting Policies: 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 as expenditures in prior years.
De Minimis Rate Used: Y
Rate Explanation: The College has elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.
Net assets with donor restrictions, derived from federal aid, gifts, or grants, may be used only to meet expenses for the purposes specifically identified by sponsoring agencies. Federal aid, gifts, or grants are recognized as Government grants revenue in the College’s financial statements as expended.
The following is a reconciliation of total expenditures reported on the accompanying Schedule to the revenue items shown as Government grants revenue on the Statement of Activities included in the College’s financial statements. For financial statement purposes, Pell grants are not reflected in the statement of activities.
The College records Pell grants and Perkins and Federal Direct Loans received by students through the College as intermediary transactions, and not grants. Therefore, these expenditures are presented below as federal funds for student financial assistance but are not reported as expenditures of the College. These expenditures are subtracted from the total expenditures on the schedule of expenditures of federal awards to agree with revenue on the statement of activities.
Reconciling items between the total expenditures on the schedule of expenditures of federal awards and the government grants revenue on the statement of activities are as follows:
Title: Note 5. Disaster Grants – Public Assistance (Presidentially Declared Disasters), ALN 97.036
Accounting Policies: 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 as expenditures in prior years.
De Minimis Rate Used: Y
Rate Explanation: The College has elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.
After a Presidentially-Declared Disaster, FEMA provides a Public Assistance Grant to reimburse eligible costs associated with repair, replacement, or restoration of disaster damaged facilities.
Nonfederal entities must record expenditures on the Schedule of Expenditures of Federal Awards (SEFA) when (1) FEMA has approved the nonfederal entity’s project worksheet, and (2) the nonfederal entity has incurred the eligible expenditures.
For the year ended June 30, 2023, a total of $531,694 for approved eligible expenditures was included on the FY23 SEFA under ALN 97.036. These expenditures were incurred in fiscal year 2022.