Audit 298091

Accounting Policies: 1. Basis of Accounting and Presentation The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of College Foundation, Inc. (the Foundation) under programs of the federal government for the year ended June 30, 2023, and is presented on the accrual basis of accounting. 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, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Foundation, it is not intended to and does not present the financial position, change in net assets, or cash flows of the Foundation. 2. Federal Family Education Loan Program As of July 1, 2010, no new loans could be originated under the Federal Family Education Loan Program (FFELP). This program was administered directly by the Foundation, and balances and transactions relating to this program are included in the Foundation's basic financial statements and schedule of agency funds. Loans outstanding at the beginning of the year are included in the federal expenditures presented in the Schedule. At June 30, 2023, the balance of FFELP loans serviced by the Foundation totaled $0. At June 30, 2023, interest and special allowance due to the Foundation from the U.S. Department of Education for FFELP loans serviced by the Foundation totaled $0. Beginning with eligible loans first disbursed on or after April 1, 2006, lenders are required to remit excess borrower interest to the U.S. Department of Education when the applicable interest rate on a loan for any given quarter exceeds the special allowance support level. During the year ended June 30, 2023, excess borrower interest remitted to the U.S. Department of Education totaled $2,472,953, which included $1,352 related to loans owned by the Foundation. At June 30, 2023, excess borrower interest due to the U.S. Department of Education for FFELP loans serviced by the Foundation totaled $0. De Minimis Rate Used: N Rate Explanation: The Foundation has elected to not use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.