Title: 1. Basis of Presentation
Accounting Policies: The Schedules have been prepared on a modified accrual basis of accounting and include all expenditures of federal and state awards, direct and pass-through, received by the College from federal and state grantor agencies.
De Minimis Rate Used: N
Rate Explanation: The College did not elect to use 10% de minimis indirect costs as allwoed under the Uniform Guidance.
The accompanying schedule of expenditures of federal awards and the schedule of expenditures
of state awards (the Schedules) present a summary of the financial activities of Baylor College of
Medicine (the College) for the year ended June 30, 2023, which have been funded by the federal
and state governments. The information in the Schedules is presented in accordance with the
requirements of the Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative
Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance
and the State of Texas Single Audit Circular. Because the Schedules present only federal and state
expenditure activities of the College, they are not intended to and do not present the financial
position, changes in net assets, or cash flows of the College as a whole.
Title: 2. Summary of Significant Accounting Policies
Accounting Policies: The Schedules have been prepared on a modified accrual basis of accounting and include all expenditures of federal and state awards, direct and pass-through, received by the College from federal and state grantor agencies.
De Minimis Rate Used: N
Rate Explanation: The College did not elect to use 10% de minimis indirect costs as allwoed under the Uniform Guidance.
The Schedules have been prepared on a modified accrual basis of accounting and include all
expenditures of federal and state awards, direct and pass-through, received by the College from
federal and state grantor agencies. Direct costs are charged to sponsored agreements on a cash
basis except for salaries and fringe benefits that are charged on an accrual basis. Indirect costs are
expensed against sponsored agreements at the close of the month in which the direct costs are
charged and, therefore, are a combination of modified accrual and cash basis accounting. Federal
and state awards are deemed to be expended when the College incurs the expenses. Such
expenditures are recognized following the cost principles contained in Uniform Guidance or the
Texas Grant Management Standards (TxGMS), as applicable, wherein certain types of
expenditures are not allowable or are limited as to reimbursement. Federal and state direct
programs and pass-through programs are presented by federal or state department and, where
applicable, the funding agency within the department and the pass-through entity.
The College did not elect to use 10% de minimis indirect costs rate as allowed under the Uniform
Guidance.
Title: 3. Adminstered Federal Loan Programs
Accounting Policies: The Schedules have been prepared on a modified accrual basis of accounting and include all expenditures of federal and state awards, direct and pass-through, received by the College from federal and state grantor agencies.
De Minimis Rate Used: N
Rate Explanation: The College did not elect to use 10% de minimis indirect costs as allwoed under the Uniform Guidance.
Outstanding loans under administered federal loan programs as of June 30, 2023, were as follows (see table in report):
Title: 4. Federal Direct Student Loans Programs
Accounting Policies: The Schedules have been prepared on a modified accrual basis of accounting and include all expenditures of federal and state awards, direct and pass-through, received by the College from federal and state grantor agencies.
De Minimis Rate Used: N
Rate Explanation: The College did not elect to use 10% de minimis indirect costs as allwoed under the Uniform Guidance.
The College participated in the Federal Direct Student Loans Program (CFDA 84.268), including
Unsubsidized Stafford Loans and PLUS Loans. The College was not the recipient of the funds.
The programs are considered as a component of the student financial assistance cluster. Loan
disbursements under the programs for the year ended June 30, 2023, totaled $22,564,693.
Title: 5. Provider Relief Fund
Accounting Policies: The Schedules have been prepared on a modified accrual basis of accounting and include all expenditures of federal and state awards, direct and pass-through, received by the College from federal and state grantor agencies.
De Minimis Rate Used: N
Rate Explanation: The College did not elect to use 10% de minimis indirect costs as allwoed under the Uniform Guidance.
The amount presented on the SEFA for Assistance Listing Number 93.498, COVID-19 – Provider
Relief Fund and American Rescue Plan (ARP) Rural Distribution (PRF Funds), is for the year
ended June 30, 2023.
Health and Human Services (HHS) has indicated the PRF funds on the SEFA be reported
corresponding to reporting requirements of the HRSA PRF Reporting Portal. Payments from HHS
for PRF are assigned to “Payment Received Periods” (each, a Period) based upon the date each
payment from the PRF was received. Each period has a specified period of availability and timing
of reporting requirements. Entities report into the HRSA PRF Reporting Portal after each period’s
deadline to use the funds (i.e., after the end of the Period of Availability).
The SEFA includes $6,636,839 of PRF Funds received from HHS between July 1, 2021 through
June 30, 2022. Such amounts were recognized as other revenue in the College’s consolidated
financial statements in the years ended June 30, 2023 and 2022.