Audit 292486

Accounting Policies: 1. SIGNIFICANT ACCOUNTING POLICIES AND BASIS OF PRESENTATION The accompanying consolidated schedule of expenditures of federal awards includes the federal award transactions of Niagara University and Subsidiary (the University) reported on the accrual basis of accounting. 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). In accordance with these requirements, certain grants are not dependent on the University’s expenditure activity and, accordingly, are considered to be expended in the fiscal year of receipt. The amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic consolidated financial statements. Because the consolidated schedule of expenditures of federal awards presents only a selected portion of the operations of the University, it is not intended to and does not present the financial position, change in net assets or cash flows of the University. 2. INDIRECT COST RATE The University is the subrecipient of certain federal funds which are reported as expenditures and listed as pass-through funds on the consolidated schedule of expenditures of federal awards. The University has not elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. 3. FEDERAL PERKINS AND NURSING STUDENT LOAN PROGRAMS The Perkins Loan Program and Nursing Student Loan Program are administered directly by the University and balances and transactions relating to these programs are included in the University’s consolidated financial statements. The Perkins Loan Program was terminated effective June 30, 2019, and no additional loans will be distributed. The combined loans outstanding under the Perkins Loan Program and Nursing Student Loan Program was $936,924 as of May 31, 2023. 4. FEDERAL DIRECT STUDENT LOANS The Federal Direct Lending Program consists of subsidized and unsubsidized Federal Loans (for students) and Federal PLUS Loans (for parents and graduate students). Federal statute requires that proceeds from Federal Direct Lending Loans (subsidized, unsubsidized, and PLUS) be disbursed to the University to be directly applied to students’ accounts. New loans processed for students during the year ended May 31, 2023, amounted to $22,939,517. With respect to this program, the University is responsible only for the performance of certain administrative duties and, accordingly, the balances and transactions of these loans are not included in the University’s consolidated financial statements. Therefore, it is not practical to determine the balance of loans outstanding to students and former students of the University as of May 31, 2023. De Minimis Rate Used: N Rate Explanation: The University has not elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.