Notes to SEFA
Title: Note 3 - Federal Student Loan Programs
Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of Northwest University and Northwest University Foundation (collectively, the University) under programs of the federal government for the year ended May 31, 2024. 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). Because the Schedule presents only a selected portion of the operations of the University, it is not intended to and does not present the financial position, changes in net assets or cash flows of the University.
Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
De Minimis Rate Used: Y
Rate Explanation: The University has elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
Reconciliation to Financial Statements - The amount of federal awards as reported on the Schedule reconciles to government grants revenue reported on the consolidated statement of activities and changes in net assets as follows for the year ended May 31, 2024:
Total federal awards reported on the schedule $13,334,096
Less - Federal Direct student loans (11,283,417)
Less - Federal Pell grants (1,911,467)
Less - Federal TEACH grants (14,143)
Add - Timing differences 4,489
Add - State grants 31,338
Government Grants Revenue $160,896
Federal grants awarded to the University on a cost‐reimbursement basis are conditional grants for which revenue is recognized in the period the conditions are satisfied.