Audit 313569

Title: 3. Guaranteed Student Loan Programs Accounting Policies: 1. Basis of Presentation: The accompanying Schedule of Expenditures of Federal Awards (the Schedule) has been prepared inaccordance with OMB Uniform Guidance. The purpose of the Schedule is to present a summary of thoseactivities of the University for the year ended June 30, 2022, which have been financed by the U.S.Government (Federal awards). For purposes of the Schedule, Federal awards include all Federalassistance entered into directly between the University and the Federal government and also between theUniversity and other primary recipients of Federal government funds (pass-through), recorded on theaccrual basis of accounting. Negative amounts listed on the Schedule represent adjustments, in the normalcourse of business, to amounts included on the prior years Schedule. The project number on the Schedulerepresents the number assigned by the direct or originating sponsor, and when not available an alphanumericnumber is assigned by the University to manage sponsored project spending. The passthroughcontract number on the Schedule represents the number assigned by the pass-through entity to theapplicable program. Federal award Assistance number and pass-through numbers are provided whenavailable. De Minimis Rate Used: N Rate Explanation: 2. Facility and Administrative Costs: The University elects not to use the 10% de minimis rate allowed under the Uniform Guidance. The University and the Federal government currently operate under a provisional agreement that provides for facilities and administrative ( F&A) cost rates under federal grants and contracts as of July 1, 2021 This agreement will remain in place until such time a new agreement is reached.[See the notes to the SEFA/Chart] With respect to the Federal Direct Lending Program (Federal Assistance Listing #84.268), the University is only responsible for the performance of certain administrative duties; therefore, the transactions and the balances of loans outstanding related to this program are not included in the University's consolidated financial statements. The schedule includes the amounts loaned to students during the year ended June 30,2022. It is not practical to estimate the outstanding balance of loans under this program.

Title: 4. Student Loan Programs Accounting Policies: 1. Basis of Presentation: The accompanying Schedule of Expenditures of Federal Awards (the Schedule) has been prepared inaccordance with OMB Uniform Guidance. The purpose of the Schedule is to present a summary of thoseactivities of the University for the year ended June 30, 2022, which have been financed by the U.S.Government (Federal awards). For purposes of the Schedule, Federal awards include all Federalassistance entered into directly between the University and the Federal government and also between theUniversity and other primary recipients of Federal government funds (pass-through), recorded on theaccrual basis of accounting. Negative amounts listed on the Schedule represent adjustments, in the normalcourse of business, to amounts included on the prior years Schedule. The project number on the Schedulerepresents the number assigned by the direct or originating sponsor, and when not available an alphanumericnumber is assigned by the University to manage sponsored project spending. The passthroughcontract number on the Schedule represents the number assigned by the pass-through entity to theapplicable program. Federal award Assistance number and pass-through numbers are provided whenavailable. De Minimis Rate Used: N Rate Explanation: 2. Facility and Administrative Costs: The University elects not to use the 10% de minimis rate allowed under the Uniform Guidance. The University and the Federal government currently operate under a provisional agreement that provides for facilities and administrative ( F&A) cost rates under federal grants and contracts as of July 1, 2021 This agreement will remain in place until such time a new agreement is reached.[See the notes to the SEFA/Chart] The University is responsible for the oversight and management of the U.S. Department of Education's Federal Title IV Program which includes Federal Perkins Loan Programs (Federal Assistance Listing #84.038), as well as Health Resources and Services Administration (HRSA) Title VII and Title VIII loan programs funded by the Department of Health and Human Services. The federally approved administrative cost allowed under the Title IV program for Federal Work study, Federal Perkins and Federal SEOG for the fiscal year ending June 30, 2022 was $368 thousand. This expense was charged to the Federal Work Study Program. The administrative cost allowance isdetermined as a percentage of the total program expenditures. The formula permits administrative cost charges at 4.5% of the first $5.5 million expended and 3% on expenditures over $5.5 million. [See the notes to the SEFA/Chart]

Title: 5. CARES Act Funding Accounting Policies: 1. Basis of Presentation: The accompanying Schedule of Expenditures of Federal Awards (the Schedule) has been prepared inaccordance with OMB Uniform Guidance. The purpose of the Schedule is to present a summary of thoseactivities of the University for the year ended June 30, 2022, which have been financed by the U.S.Government (Federal awards). For purposes of the Schedule, Federal awards include all Federalassistance entered into directly between the University and the Federal government and also between theUniversity and other primary recipients of Federal government funds (pass-through), recorded on theaccrual basis of accounting. Negative amounts listed on the Schedule represent adjustments, in the normalcourse of business, to amounts included on the prior years Schedule. The project number on the Schedulerepresents the number assigned by the direct or originating sponsor, and when not available an alphanumericnumber is assigned by the University to manage sponsored project spending. The passthroughcontract number on the Schedule represents the number assigned by the pass-through entity to theapplicable program. Federal award Assistance number and pass-through numbers are provided whenavailable. De Minimis Rate Used: N Rate Explanation: 2. Facility and Administrative Costs: The University elects not to use the 10% de minimis rate allowed under the Uniform Guidance. The University and the Federal government currently operate under a provisional agreement that provides for facilities and administrative ( F&A) cost rates under federal grants and contracts as of July 1, 2021 This agreement will remain in place until such time a new agreement is reached.[See the notes to the SEFA/Chart] The Schedule includes grant activity related to the DHHS Coronavirus Aid Relief and Economic Security ("CARES") Act Assistance Listing Number 93.498. As required based on guidance in the 2022 OMB Compliance Supplement, the Schedule includes all Period 2 and 3 funds received between July 1, 2020 and June 30, 2021 and expended by June 30, 2022 as reported to HRSA via the PRF Reporting Portal. In addition, the University received other COVID-19 related funding, identified on separate lines in the Schedule byFederal Assistance Listing number with COVID-19 as a prefix added to the program name in the specific cluster where they reside.