Title: Note 1 - General
Accounting Policies: Expenditures reported on the Schedule of Expenditures of Federal Awards is presented on the same basis of accounting as the financial statements, although the basis for determining when federal awards are expensed is presented in accordance with the Uniform Guidance . Such expenditures are recognized following, as applicable, either the cost principles in Office of Management and Budget Circular A-122, Cost Principles for Non-Profit Organizations, or the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirement, Cost Principles and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowed or are limited as tor reimbursement.
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.
Dillard University (the University) located in New Orleans, Louisiana is an institution of higher education founded in 1869.
The University is a private, historically black liberal arts college that is affiliated with the United Church of Christ and the United Methodist Church, with degree-granting academic units which include the following:
-- School of Accounting and Financial Economics;
-- School of Population and Health Sciences;
-- School of Humanities;
-- School of Science, Technology, Engineering and Math;
-- School of Social Sciences;
-- School of Business Administration; and
-- College of Nursing.
The University is accredited by the Commission on Colleges of the Southern Association of Colleges and Schools.
Dillard University is the recipient of various Federal grants, subgrants and awards from the U.S. Department of Defense, U.S. Department of Education, the U.S. Department of Health and Human Services, U.S. Department of Homeland Security, U.S. Department of Housing and Urban Development, and other agencies to assist in achieving a higher level of learning for its student body. Total direct federal and federal awards passed through other agencies amounted to more than $27,501,403 for the fiscal year July 1, 2022 through June 30, 2023.
Student Financial Aid
Dillard University was approved by the then Office of Education for participation in the Student Financial Aid Programs. These programs include the Nursing Student Loan Program (NSL), Federal Work Study Program (FWS), Federal Supplemental Education Opportunity Grant Program (FSEOG), Federal PELL Grant and the Federal Direct Student Loan Program (Direct). Listed below is a brief description of the Student Aid Programs administered by the University. The authority for schools to make new Federal Perkins Loans ended September 30, 2017.
o Nursing Student Loan Program
The University entered into an agreement with the U.S. Department of Health and Human Services to establish a Nursing Student Loan Program. During the year ended June 30, 2023, $68,950 in Nursing Student Loans were disbursed to students.
o Federal Work-Study Program
The University established the FWS Program pursuant to Title IV, Part C of the Higher Education Act of 1965, as amended. During the year ended June 30, 2023, federal expenditures totaled $391,327. The University elected and received approval from the U.S. Department of Education to waive the institutional matching requirement for the Federal Work Study Program's approved funding level for the fiscal year ended June 30, 2023. The University was entitled to this waiver because of its participation in the Strengthening Historically Black Colleges Title III Program.
o FSEOG Program
The FSEOG Program was established at the University in 1965 under Title IV, Part A of the Higher Education Act of 1965, as amended. During the year ended June 30, 2023, federal expenditures totaled $325,203.
The University received approval from the U.S. Department of Education to waive the institutional matching requirement for the FSEOG Program.
o Federal Pell Grant Program
The University entered into an agreement with the Office of Education to participate in the Federal Pell Grant Program. This program provides eligible students with a foundation of financial aid to help defray the costs of post-secondary education. During the year ended June 30, 2023, Federal Pell Grant awards to full-time and part-time students totaled $4,682,621.
o Federal Direct Student Loan Program
The Federal Direct Student Loan Program enables eligible undergraduate and graduate students to borrow directly from a bank or other lending institution. During the current year, approximately $10,193,312 was disbursed to students under the Federal Direct Student Loan Program. The Federal Direct Student Loan Program's Cohort default rate is 0.0%.
The Student Financial Aid programs are administered by the University’s Financial Aid Department. All accounting for the Student Financial Aid programs is performed by the University’s Division of Business and Finance. The Financial Aid office is under the control of the Vice-President of Business and Finance.
Title: Note 2 - Basis of Presentation and Accounting
Accounting Policies: Expenditures reported on the Schedule of Expenditures of Federal Awards is presented on the same basis of accounting as the financial statements, although the basis for determining when federal awards are expensed is presented in accordance with the Uniform Guidance . Such expenditures are recognized following, as applicable, either the cost principles in Office of Management and Budget Circular A-122, Cost Principles for Non-Profit Organizations, or the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirement, Cost Principles and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowed or are limited as tor reimbursement.
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.
The accompanying Schedule of Expenditures of Federal Awards includes the federal award activity of the University under programs of the federal government for the year ended June 30, 2023. The information in the Schedule of Expenditures of Federal Awards 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 activities of the University, it is not intended to and does not present either the financial position, changes in net assets, cash flows or the current fund's revenues, expenditures, and other changes of the University. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements.
The purpose of the Schedule of Expenditures of Federal Awards is to present a summary of those activities of the University for the year ended June 30, 2023 which have been financed principally by the U. S. Government (federal awards). For purposes of the Schedule, federal awards include all Federal assistance and procurement relationships entered into directly between the University and the federal government and sub-awards from non-federal organizations made under federally sponsored agreements.
Title: Note 3 - Summary of Significant Accounting Policies
Accounting Policies: Expenditures reported on the Schedule of Expenditures of Federal Awards is presented on the same basis of accounting as the financial statements, although the basis for determining when federal awards are expensed is presented in accordance with the Uniform Guidance . Such expenditures are recognized following, as applicable, either the cost principles in Office of Management and Budget Circular A-122, Cost Principles for Non-Profit Organizations, or the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirement, Cost Principles and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowed or are limited as tor reimbursement.
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.
Expenditures reported on the Schedule of Expenditures of Federal Awards is presented on the same basis of accounting as the financial statements, although the basis for determining when federal awards are expensed is presented in accordance with the Uniform Guidance. Such expenditures are recognized following, as applicable, either the cost principles in Office of Management and Budget Circular A-122, Cost Principles for Non-Profit Organizations, or the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirement, Cost Principles and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowed or are limited as tor reimbursement.
Title: Note 4 - Program Organization and Financing - (Nursing Loan Program)
Accounting Policies: Expenditures reported on the Schedule of Expenditures of Federal Awards is presented on the same basis of accounting as the financial statements, although the basis for determining when federal awards are expensed is presented in accordance with the Uniform Guidance . Such expenditures are recognized following, as applicable, either the cost principles in Office of Management and Budget Circular A-122, Cost Principles for Non-Profit Organizations, or the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirement, Cost Principles and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowed or are limited as tor reimbursement.
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.
The Nursing Loan Program is operated by the University under an agreement with the Department of Health and Human Services. The accounts of the program are included among the Loan Funds of the University.
The University disbursed Nursing loans to students totaling $68,950.
Title: Note 5 - Contingencies
Accounting Policies: Expenditures reported on the Schedule of Expenditures of Federal Awards is presented on the same basis of accounting as the financial statements, although the basis for determining when federal awards are expensed is presented in accordance with the Uniform Guidance . Such expenditures are recognized following, as applicable, either the cost principles in Office of Management and Budget Circular A-122, Cost Principles for Non-Profit Organizations, or the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirement, Cost Principles and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowed or are limited as tor reimbursement.
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.
Participation in Grant Programs
The University administers and participates in certain federal and state programs as disclosed in the Schedule of Expenditures of Federal Awards. In connection with the administration and operations of these grants, the University is to expend grant funds and allocations in accordance with program guidelines and regulations. However, should the University have operated or administered the programs and/or grants in a manner which would be in non-compliance with the guidelines and regulations, the University may be required by the funding sources to repay some portion or all of the grant award.
Title: Note 6 - Major Federal Financial Assistance Programs
Accounting Policies: Expenditures reported on the Schedule of Expenditures of Federal Awards is presented on the same basis of accounting as the financial statements, although the basis for determining when federal awards are expensed is presented in accordance with the Uniform Guidance . Such expenditures are recognized following, as applicable, either the cost principles in Office of Management and Budget Circular A-122, Cost Principles for Non-Profit Organizations, or the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirement, Cost Principles and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowed or are limited as tor reimbursement.
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.
The University’s major federal financial assistance program for the year ended June 30, 2023 was determined based on guidelines established by the Uniform Guidance. Such programs are the Student Financial Assistance Cluster, Educational Stabilization Fund (CARES Act), Research and Development Cluster, and Disaster Grants-Public Assistance (Presidentially Declared Disasters).
Title: Note 7 - Indirect Cost Rate
Accounting Policies: Expenditures reported on the Schedule of Expenditures of Federal Awards is presented on the same basis of accounting as the financial statements, although the basis for determining when federal awards are expensed is presented in accordance with the Uniform Guidance . Such expenditures are recognized following, as applicable, either the cost principles in Office of Management and Budget Circular A-122, Cost Principles for Non-Profit Organizations, or the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirement, Cost Principles and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowed or are limited as tor reimbursement.
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.
The University has not elected to use the ten percent (10%) de minimis indirect cost rate allowed under the Uniform Guidance.
Title: Note 8 - Subrecipients
Accounting Policies: Expenditures reported on the Schedule of Expenditures of Federal Awards is presented on the same basis of accounting as the financial statements, although the basis for determining when federal awards are expensed is presented in accordance with the Uniform Guidance . Such expenditures are recognized following, as applicable, either the cost principles in Office of Management and Budget Circular A-122, Cost Principles for Non-Profit Organizations, or the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirement, Cost Principles and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowed or are limited as tor reimbursement.
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.
Of the federal expenditures presented in the Schedule, the University did not provide federal awards to sub recipients.
Title: Note 9 - Loans and Loan Guarantees Outstanding and Other Non-Cash Assistance
Accounting Policies: Expenditures reported on the Schedule of Expenditures of Federal Awards is presented on the same basis of accounting as the financial statements, although the basis for determining when federal awards are expensed is presented in accordance with the Uniform Guidance . Such expenditures are recognized following, as applicable, either the cost principles in Office of Management and Budget Circular A-122, Cost Principles for Non-Profit Organizations, or the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirement, Cost Principles and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowed or are limited as tor reimbursement.
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.
The federal student loan programs are administered directly by the University, and balances and transactions relating to these programs are included in the University’s basic financial statements. Loans made during the year are included in the federal expenditures presented in the Schedule of Expenditures of Federal Awards. The Schedule of Expenditures of Federal Awards and the related notes include certain loans and loan guarantees outstanding as well as non-cash assistance as presented in the Schedule I, Schedule of Disclosures for Federally Assisted Loans. Outstanding loan balances are only presented for those programs with significant compliance requirements other than repayment.
Title: Note 10 - Subrequent Events
Accounting Policies: Expenditures reported on the Schedule of Expenditures of Federal Awards is presented on the same basis of accounting as the financial statements, although the basis for determining when federal awards are expensed is presented in accordance with the Uniform Guidance . Such expenditures are recognized following, as applicable, either the cost principles in Office of Management and Budget Circular A-122, Cost Principles for Non-Profit Organizations, or the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirement, Cost Principles and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowed or are limited as tor reimbursement.
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.
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 11 - Financial Responsibility
Accounting Policies: Expenditures reported on the Schedule of Expenditures of Federal Awards is presented on the same basis of accounting as the financial statements, although the basis for determining when federal awards are expensed is presented in accordance with the Uniform Guidance . Such expenditures are recognized following, as applicable, either the cost principles in Office of Management and Budget Circular A-122, Cost Principles for Non-Profit Organizations, or the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirement, Cost Principles and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowed or are limited as tor reimbursement.
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.
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 University included the debt obtained through long-term lines of credit in total debt obtained for long-term purposes that exceeds 12 months and was used to fund capitalized assets (i.e., property, plant and equipment).
See the Notes to the SEFA for chart/table.