Audit 293815

Title: Directly Administered Student Loan Programs Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the Schedule) summarizes the expenditures of Case Western Reserve University (the University) under programs of the federal government for the year ended June 30, 2023. The information presented in the Schedule is presented on the accrual basis of accounting, which is in accordance with the 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 the federal award activity of the University, it is not intended to and does not present the financial position, changes in net assets and cash flows of the University. Negative numbers in the Schedule represent adjustments to amounts reported in prior years in the normal course of business. Assistance Listing numbers and pass-through numbers are provided when available. For purposes of the Schedule, federal awards include all grants, contracts and similar agreements entered into directly between the University and agencies and departments of the federal government and all sub-awards to the University by non-federal organizations pursuant to federal grants, contracts and similar agreements. In May 2002, the University entered into an agreement with the Cleveland Clinic Foundation (CCF) to form a new medical education and research program, Cleveland Clinic Lerner College of Medicine (CCLCM), within the University’s School of Medicine. This is a collaborative arrangement between the University and CCF which is governed by the academic and research standards of the University. The results of both the academic and research operations of CCLCM are included in the University’s accompanying financial statements. Beginning in fiscal 2004, research grants from the National Institutes of Health were awarded to and administered through the University in support of CCLCM investigators based at CCF. Oversight for the CCLCM grants is ultimately the responsibility of the Vice Dean for the University’s School of Medicine, though day-to-day operations is delegated to CCF who abide by the research policies and procedures of the University. The University’s indirect cost rate set by the Department of Health & Human Services is applied to the grants awarded for CCLCM. For these reasons, the awards in support of CCLCM investigators based at CCF are not presented as sub-recipient awards in the Schedule. De Minimis Rate Used: N Rate Explanation: The University applies its predetermined approved facilities and administrative rate ascertained through negotiations with the U.S. Department of Health and Human Services when charging indirect costs to federal awards rather than the 10% de minimis cost rate as described in Section 200.414 of the Uniform Guidance. Pursuant to the agreement with the U.S. Department of Health and Human Services dated August 30, 2022, the predetermined rate effective for the period July 1, 2021 to June 30, 2025 for on-campus research and for CCLCM is 61 % of modified total direct costs, while the off-campus research rate is 26%. The federal student loan programs listed below are administered directly by the University and balances and transactions relating to these programs are included in the University's basic financial statements. The balance of loans outstanding at June 30, 2023 consists of: See the Notes to the SEFA for the chart/table.