Audit 316467

Title: Federal Loan Programs Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal grant activity of Clark Atlanta University and is presented on the accrual basis of accounting. The information in this 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). Therefore, some amounts presented in this schedule may differ from amountspresented in, or used in the preparation of, the basic financial statements. All programs included in the Schedule of Expenditures of Federal Awards are presented by federal agency and major subdivision within the federal agency. Pass-through awards have been presented by pass-through entity and federal identification number or pass-through entity identification number, when available. De Minimis Rate Used: N Rate Explanation: For the year ended June 30, 2023, the University has elected not to use the 10% de minimus indirect cost rate allowed under the Uniform Guidance. Most federal financial assistance is in the form of cash awards. However, there are a number of federal programs that do not involve cash transactions with the University. These noncash transactions in which the University obtains other assistance include the Federal Direct Student Loan Program and revolving loan programs, such as the Federal Perkins Loan Program. Clark Atlanta University is responsible only for the performance of certain administrative duties with respect to the Federal Direct Student Loan Program. It is not practical to determine the balance of loans outstanding to students and former students of the University under this program as of June 30, 2023. These loans are not included in the University’s financial statements. The loans advanced and related expenditures are as follows: Federal Direct Student Loan Programs Student loans advanced: Subsidized Stafford Loan Program $ 10,745,016 Unsubsidized Stafford Loan Program 15,925,817 Total Direct Stafford Loan Program 26,670,833 Federal Direct PLUS Loan Program 49,451,688 Federal Direct Grad PLUS Loan Program 2,980,519 Total Direct Student Loan Programs $ 79,103,040 The Federal Perkins Loan Program is administered directly by Clark Atlanta University and balances and transactions relating to the program are included in Clark Atlanta University’s financial statements. During the fiscal year ended June 30, 2023, Clark Atlanta University disbursed $0 in new loans under the Federal Perkins Loan Program. The balance of loans outstanding under the Federal Perkins Loan Program was $2,490,712 as of June 30, 2023. The amounts presented in the Schedule are the outstanding loan balances at June 30, 2022. Expenditures for student financial assistance programs include the Federal Pell grants to students, the federal share of students’ Federal Supplemental Educational Opportunity Grant (FSEOG) program grants, the Federal Work Study (FWS) program earnings, certain other federal financial aid for students, and administrative cost allowances, where applicable.