Title: NOTE 1
Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of Xavier University of Louisiana (the University) and is presented on the accrual basis of accounting. The information in this Schedule is presented in accordance with the requirements of the Uniform Guidance, Audits of States, Local Governments, and Non-Profit Organizations. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements.
De Minimis Rate Used: N
Rate Explanation: The University has not elected to use the ten percent (10%) de minimis indirect cost rate allowed under the Uniform Guidance. Instead, the University utilizes the Modified Total Direct Cost rate which approximates forty-two percent (42%).
BASIS OF ACCOUNTING
The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of Xavier University of Louisiana (the University) and is presented on the accrual basis of accounting. The information in this Schedule is presented in accordance with the requirements of the Uniform Guidance, Audits of States, Local Governments, and Non-Profit Organizations. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements.
Title: NOTE 2
Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of Xavier University of Louisiana (the University) and is presented on the accrual basis of accounting. The information in this Schedule is presented in accordance with the requirements of the Uniform Guidance, Audits of States, Local Governments, and Non-Profit Organizations. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements.
De Minimis Rate Used: N
Rate Explanation: The University has not elected to use the ten percent (10%) de minimis indirect cost rate allowed under the Uniform Guidance. Instead, the University utilizes the Modified Total Direct Cost rate which approximates forty-two percent (42%).
CURRENT LOAN AMOUNT & OUTSTANDING LOAN BALANCES
The current loan activity during the year ended June 30, 2023 and the related loan balances outstanding at June 30, 2023 are presented below. The loan activity is also included in the federal expenditures presented in the Schedule.
See the Notes to the SEFA for the chart/table.
Title: NOTE 3
Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of Xavier University of Louisiana (the University) and is presented on the accrual basis of accounting. The information in this Schedule is presented in accordance with the requirements of the Uniform Guidance, Audits of States, Local Governments, and Non-Profit Organizations. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements.
De Minimis Rate Used: N
Rate Explanation: The University has not elected to use the ten percent (10%) de minimis indirect cost rate allowed under the Uniform Guidance. Instead, the University utilizes the Modified Total Direct Cost rate which approximates forty-two percent (42%).
SUBRECIPIENTS
Of the federal expenditures presented in the Schedule, the University provided federal awards to subrecipients as follows:
See the Notes to the SEFA for the chart/table.
Title: NOTE 4
Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of Xavier University of Louisiana (the University) and is presented on the accrual basis of accounting. The information in this Schedule is presented in accordance with the requirements of the Uniform Guidance, Audits of States, Local Governments, and Non-Profit Organizations. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements.
De Minimis Rate Used: N
Rate Explanation: The University has not elected to use the ten percent (10%) de minimis indirect cost rate allowed under the Uniform Guidance. Instead, the University utilizes the Modified Total Direct Cost rate which approximates forty-two percent (42%).
INDIRECT COST RATE
The University has not elected to use the ten percent (10%) de minimis indirect cost rate allowed under the Uniform Guidance. Instead, the University utilizes the Modified Total Direct Cost rate which approximates forty-two percent (42%).
Title: NOTE 5
Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of Xavier University of Louisiana (the University) and is presented on the accrual basis of accounting. The information in this Schedule is presented in accordance with the requirements of the Uniform Guidance, Audits of States, Local Governments, and Non-Profit Organizations. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements.
De Minimis Rate Used: N
Rate Explanation: The University has not elected to use the ten percent (10%) de minimis indirect cost rate allowed under the Uniform Guidance. Instead, the University utilizes the Modified Total Direct Cost rate which approximates forty-two percent (42%).
SUBSEQUENT EVENTS
The University has evaluated subsequent events from July 1, 2023 to March 29, 2024, the date the financial statements were available to be issued and determined that no events occurred that required disclosure. No subsequent events occurring after this date have been evaluated for inclusion in these financial statements.
Title: NOTE 6
Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of Xavier University of Louisiana (the University) and is presented on the accrual basis of accounting. The information in this Schedule is presented in accordance with the requirements of the Uniform Guidance, Audits of States, Local Governments, and Non-Profit Organizations. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements.
De Minimis Rate Used: N
Rate Explanation: The University has not elected to use the ten percent (10%) de minimis indirect cost rate allowed under the Uniform Guidance. Instead, the University utilizes the Modified Total Direct Cost rate which approximates forty-two percent (42%).
FINANCIAL RESPONSIBILITY
Section 498(c)(1) of the Higher Education Act authorizes the Secretary of the Department to establish ratios and other criteria for determining whether an institution has sufficient financial responsibility. Section 668.172 of the current regulation, originally effective July 1, 1998, established a methodology based on three (3) ratios—primary reserve, equity, and net income—that measure different aspects of financial health and are combined into a composite score to measure financial responsibility. Several mathematical steps are required to combine an institution's ratio results into a composite score:
• Determine the value of each ratio;
• Calculate a strength factor score for each ratio using the appropriate algorithm;
• Calculate a weighted score for each ratio by multiplying the strength factor score by its corresponding weighted percentage; and
• Add the weighted scores to arrive at the composite score.
Institutions receiving a composite score of 1.5 or greater are considered financially responsible. An institution that fails the financial responsibility standards may continue to participate in the Title IV programs under provisional certification for three (3) years. To continue to participate in the Title IV programs under provisional certification, an institution will be required to provide surety to the Department of Education of ten (10) percent or more of its previous year’s Title IV funding, as determined by the Department of Education.
The financial information below presents the correspondence between certain values presented in the University’s financial statements and the values as they are included in the determination of the ratios used by ED to gauge the University’s financial responsibility as of June 30, 2023.
See the Notes to the SEFA for the chart/table.