Title: Summary of Significant Accounting Policies
Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the Schedule) presents the activity of all federal award programs of the University. Because the Schedule presents only a selected portion of the operations of the University, it is not intended to, and does not, present the financial position, changes in net assets, or cash flows of the University.
For the purposes of the Schedule, federal awards include all grants and contracts entered into directly between the University and agencies and departments of the federal government and pass-through agencies. The awards are classified into major program categories in accordance with the provisions of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), for Audits of States, Local Governments, and Non-Profit Organizations.
De Minimis Rate Used: N
Rate Explanation: The University has elected not to use the 10.0% de minimis direct cost rate allowed under the Uniform Guidance. Facilities and administrative costs allocated to awards for the year ended May 31, 2023, were based on predetermined rates up to 36.8% negotiated with the University’s cognizant federal agency, the Department of Health and Human Services, and are included as a component of the expenditures in the Schedule.
The accompanying Schedule of Expenditures of Federal Awards (the Schedule) presents the activity of all federal award programs of the University. Because the Schedule presents only a selected portion of the operations of the University, it is not intended to, and does not, present the financial position, changes in net assets, or cash flows of the University.
For the purposes of the Schedule, federal awards include all grants and contracts entered into directly between the University and agencies and departments of the federal government and pass-through agencies. The awards are classified into major program categories in accordance with the provisions of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), for Audits of States, Local Governments, and Non-Profit Organizations.
Title: Basis of Presentation
Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the Schedule) presents the activity of all federal award programs of the University. Because the Schedule presents only a selected portion of the operations of the University, it is not intended to, and does not, present the financial position, changes in net assets, or cash flows of the University.
For the purposes of the Schedule, federal awards include all grants and contracts entered into directly between the University and agencies and departments of the federal government and pass-through agencies. The awards are classified into major program categories in accordance with the provisions of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), for Audits of States, Local Governments, and Non-Profit Organizations.
De Minimis Rate Used: N
Rate Explanation: The University has elected not to use the 10.0% de minimis direct cost rate allowed under the Uniform Guidance. Facilities and administrative costs allocated to awards for the year ended May 31, 2023, were based on predetermined rates up to 36.8% negotiated with the University’s cognizant federal agency, the Department of Health and Human Services, and are included as a component of the expenditures in the Schedule.
The information in the Schedule is prepared based on the accrual basis of accounting and is also presented in accordance with the requirements of the Uniform Guidance. Therefore, some amounts presented in the Schedule may differ from amounts presented in, or used in the preparation of, the consolidated financial statements.
Title: Relationship to Federal Financial Reports
Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the Schedule) presents the activity of all federal award programs of the University. Because the Schedule presents only a selected portion of the operations of the University, it is not intended to, and does not, present the financial position, changes in net assets, or cash flows of the University.
For the purposes of the Schedule, federal awards include all grants and contracts entered into directly between the University and agencies and departments of the federal government and pass-through agencies. The awards are classified into major program categories in accordance with the provisions of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), for Audits of States, Local Governments, and Non-Profit Organizations.
De Minimis Rate Used: N
Rate Explanation: The University has elected not to use the 10.0% de minimis direct cost rate allowed under the Uniform Guidance. Facilities and administrative costs allocated to awards for the year ended May 31, 2023, were based on predetermined rates up to 36.8% negotiated with the University’s cognizant federal agency, the Department of Health and Human Services, and are included as a component of the expenditures in the Schedule.
Amounts reported in the Schedule agree in all material respects with the amounts reported in the related federal financial reports.
Title: Federal Perkins Loan Program
Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the Schedule) presents the activity of all federal award programs of the University. Because the Schedule presents only a selected portion of the operations of the University, it is not intended to, and does not, present the financial position, changes in net assets, or cash flows of the University.
For the purposes of the Schedule, federal awards include all grants and contracts entered into directly between the University and agencies and departments of the federal government and pass-through agencies. The awards are classified into major program categories in accordance with the provisions of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), for Audits of States, Local Governments, and Non-Profit Organizations.
De Minimis Rate Used: N
Rate Explanation: The University has elected not to use the 10.0% de minimis direct cost rate allowed under the Uniform Guidance. Facilities and administrative costs allocated to awards for the year ended May 31, 2023, were based on predetermined rates up to 36.8% negotiated with the University’s cognizant federal agency, the Department of Health and Human Services, and are included as a component of the expenditures in the Schedule.
Total loans outstanding under the Federal Perkins Loan Program were $0 at May 31, 2023. The amounts included in the Schedule consist of loans advanced to students and the administrative cost allowance for the year ended May 31, 2023.
Title: Administrative Cost Allowance
Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the Schedule) presents the activity of all federal award programs of the University. Because the Schedule presents only a selected portion of the operations of the University, it is not intended to, and does not, present the financial position, changes in net assets, or cash flows of the University.
For the purposes of the Schedule, federal awards include all grants and contracts entered into directly between the University and agencies and departments of the federal government and pass-through agencies. The awards are classified into major program categories in accordance with the provisions of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), for Audits of States, Local Governments, and Non-Profit Organizations.
De Minimis Rate Used: N
Rate Explanation: The University has elected not to use the 10.0% de minimis direct cost rate allowed under the Uniform Guidance. Facilities and administrative costs allocated to awards for the year ended May 31, 2023, were based on predetermined rates up to 36.8% negotiated with the University’s cognizant federal agency, the Department of Health and Human Services, and are included as a component of the expenditures in the Schedule.
Administrative cost allowance included in the Schedule is summarized as follows: $197,220
Title: Organization
Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the Schedule) presents the activity of all federal award programs of the University. Because the Schedule presents only a selected portion of the operations of the University, it is not intended to, and does not, present the financial position, changes in net assets, or cash flows of the University.
For the purposes of the Schedule, federal awards include all grants and contracts entered into directly between the University and agencies and departments of the federal government and pass-through agencies. The awards are classified into major program categories in accordance with the provisions of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), for Audits of States, Local Governments, and Non-Profit Organizations.
De Minimis Rate Used: N
Rate Explanation: The University has elected not to use the 10.0% de minimis direct cost rate allowed under the Uniform Guidance. Facilities and administrative costs allocated to awards for the year ended May 31, 2023, were based on predetermined rates up to 36.8% negotiated with the University’s cognizant federal agency, the Department of Health and Human Services, and are included as a component of the expenditures in the Schedule.
Chapman University and its consolidated affiliates, which include Chapman University Charitable Giving LLC, Chapman University Enterprises, Inc., Chapman Bond Guarantor, LLC, 16355 Laguna Canyon road LLC, and Chapman University Foundation (collectively, the University), is a not-for-profit coeducattional institution of higher learning and taxable coporation primarily located in Orange County, California.