Audit 298065

Title: Student Financial Aid Loan Programs Accounting Policies: Basis of presentation - The purpose of the schedule of expenditures of federal awards (the Schedule) is to present a detail of all programs classified by federal grantor agency expended by the University of Nebraska (the University) for the year ended June 30, 2023. The information in the Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, CostPrinciples, and Audit Requirements for Federal Awards (Uniform Guidance). 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 financial position, or cash flows of the University. For the purpose of the Schedule, federal awards have been classified into two types: Direct federal awards consisting of federal awards and federal student financial aid, and Pass-through funds received from nonfederal organizations made under federally sponsored programs conducted by those organizations. Assistance Listing numbers are presented for those programs for which such numbers are available. Programs for which no assistance numbers are available have been presented under the applicable caption in the Schedule showing the grantor federal agency number and grant identification number. Those programs without assistance listing or grant numbers primarily represent passthrough funds for which such information was not available from the grantor. The accounting principles followed by the University in each of these areas and used in preparing the accompanying Schedule are as follows: Reporting Entity - The reporting entity for the Schedule includes the accounts for all of the campuses, departments and divisions of the University and its component units. Total Federal Awards - 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, the U.S. Office of Management and Budget (OMB) Circular A-21, Cost Principles for Educational Institutions, or other applicable regulatory 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: N Rate Explanation: The auditee did not use the de minimis cost rate. Expenditures for federal programs are recognized using the cost accounting principles contained in the OMB Circular, Cost Principles for Educational Institutions and Uniform Guidance 2 CFR Part 200. Under those cost principles, certain types of expenditures are not allowable or are limited as to reimbursement. Expenditures include a portion of costs associated with general University activities (facilities and administrative costs or indirect costs), which are allocated to federal awards under negotiated formulas commonly referred to as facilities and administrative cost rates. Facilities and administrative costs allocated to such awards for the year ended June 30, 2023, were based on predetermined fixed rates up to 55.5% negotiated with the Universitys cognizant federal agency, the U.S. Department of Health and Human Services, or the indirect cost rate agreed upon through the grant agreement and are included as a component of the expenditures in the Schedule. The federal loan programs listed subsequently are administered directly by the University, and balances and transactions related to these programs are included in the University’s basic financial statements, which are issued separately. Loans outstanding at the beginning of the year are included in the federal expenditures presented in the Schedule. Assistance Listing Number Program Name Outstanding Balance at June 30, 2023. 84.038 Federal Perkins Loan Program $ 6,484,263. 93.264 Nurse Faculty Loan Program 238,628. 93.342 Health Profession Student Loan Program 7,850,184. 93.364 Nursing Student Loan Program 675,978. The four campuses of the University (University of Nebraska – Lincoln, University of Nebraska –Omaha, University of Nebraska – Kearney, and University of Nebraska Medical Center) participate in the Federal Direct Loan Program, Assistance Listing No. 84.268, (including Federal Stafford and PLUS loans). Since the University does not administer the program, the outstanding loan balances have not been included in the Schedule. New loans made during the year of $206,396,892 are included in the Schedule.

Title: Indirect Cost Rates Accounting Policies: Basis of presentation - The purpose of the schedule of expenditures of federal awards (the Schedule) is to present a detail of all programs classified by federal grantor agency expended by the University of Nebraska (the University) for the year ended June 30, 2023. The information in the Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, CostPrinciples, and Audit Requirements for Federal Awards (Uniform Guidance). 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 financial position, or cash flows of the University. For the purpose of the Schedule, federal awards have been classified into two types: Direct federal awards consisting of federal awards and federal student financial aid, and Pass-through funds received from nonfederal organizations made under federally sponsored programs conducted by those organizations. Assistance Listing numbers are presented for those programs for which such numbers are available. Programs for which no assistance numbers are available have been presented under the applicable caption in the Schedule showing the grantor federal agency number and grant identification number. Those programs without assistance listing or grant numbers primarily represent passthrough funds for which such information was not available from the grantor. The accounting principles followed by the University in each of these areas and used in preparing the accompanying Schedule are as follows: Reporting Entity - The reporting entity for the Schedule includes the accounts for all of the campuses, departments and divisions of the University and its component units. Total Federal Awards - 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, the U.S. Office of Management and Budget (OMB) Circular A-21, Cost Principles for Educational Institutions, or other applicable regulatory 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: N Rate Explanation: The auditee did not use the de minimis cost rate. Expenditures for federal programs are recognized using the cost accounting principles contained in the OMB Circular, Cost Principles for Educational Institutions and Uniform Guidance 2 CFR Part 200. Under those cost principles, certain types of expenditures are not allowable or are limited as to reimbursement. Expenditures include a portion of costs associated with general University activities (facilities and administrative costs or indirect costs), which are allocated to federal awards under negotiated formulas commonly referred to as facilities and administrative cost rates. Facilities and administrative costs allocated to such awards for the year ended June 30, 2023, were based on predetermined fixed rates up to 55.5% negotiated with the Universitys cognizant federal agency, the U.S. Department of Health and Human Services, or the indirect cost rate agreed upon through the grant agreement and are included as a component of the expenditures in the Schedule. Expenditures for federal programs are recognized using the cost accounting principles contained in the OMB Circular, Cost Principles for Educational Institutions and Uniform Guidance 2 CFR Part 200. Under those cost principles, certain types of expenditures are not allowable or are limited as to reimbursement. Expenditures include a portion of costs associated with general University activities (facilities and administrative costs or indirect costs), which are allocated to federal awards under negotiated formulas commonly referred to as facilities and administrative cost rates. Facilities and administrative costs allocated to such awards for the year ended June 30, 2023, were based on predetermined fixed rates up to 55.5% negotiated with the University’s cognizant federal agency, the U.S. Department of Health and Human Services, or the indirect cost rate agreed upon through the grant agreement and are included as a component of the expenditures in the Schedule.