Audit 327621

Title: Note 4:Federal Direct Student Loan Program Accounting Policies: The accompanying schedule of expenditures of federal awards (Schedule) includes the federal award activity of The University of Oklahoma – Norman Campus (University) under programs of the federal government for the year ended June 30, 2024. The information 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 financial position, or cash flows of the University. Expenditures reported in the Schedule are reported on the cash basis of accounting. Federal awards provided to subrecipients are treated as expenditures when paid to the subrecipient. When applicable, 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. For purposes of the Schedule, federal awards have been identified into two types: Direct federal awards consisting of federal assistance and federal student financial aid; Pass‐through funds received from non‐federal organizations made under federally sponsored programs conducted by those organizations. Complete Federal Assistance Listing Numbers (FALN) are presented for those programs for which such numbers were available. FALN prefixes are presented for programs for which a complete FALN number is not available. Federal direct programs are presented by federal department and, where applicable, the funding agency within the department. Federal pass‐through programs are presented by the entity through which the University received the federal award. Amounts provided to subrecipients from each federal program have been separately identified for additional analysis. These pass‐through awards are included in total cash basis expenditures. The University administers the Pell Grant program, Supplemental Education Opportunity Grants, and other grant programs for students attending both the Norman and the Health Sciences Center campuses of the University. Grant revenues and expenditures under such programs for students attending these campuses are included in the financial statements of the Norman Campus. Therefore, the Norman Campus Schedule of Expenditures of Federal Awards includes expenditures under such programs for students attending these campuses. Federal contracts that do not meet the definition of Federal Domestic Assistance have been excluded from the Schedule as it was determined, based upon discussions with the University’s federal cognizant agency or by the nature of the contract, that such contracts do not represent auditable federal awards under the provisions of the Uniform Guidance. Also, fixed price and fixed rate programs have been excluded. De Minimis Rate Used: N Rate Explanation: The University has not elected to use the 10% de minimis cost rate. Under the Federal Direct Student Loan Program (Direct Loan Program), the U.S. Department of Education makes loans to enable a student or parent to pay the costs of the student’s attendance at a postsecondary school. The Direct Loan Program enables an eligible student or parent to obtain a loan to pay for the student’s cost of attendance directly from the U.S. Department of Education rather than through private lenders. The University began participation in the Direct Loan Program on July 1, 2010. The University administers the origination and disbursement of the loans to eligible students or parents. The University is not responsible for the collection of these loans.

Title: Note 5:Federal Perkins Loan Program Accounting Policies: The accompanying schedule of expenditures of federal awards (Schedule) includes the federal award activity of The University of Oklahoma – Norman Campus (University) under programs of the federal government for the year ended June 30, 2024. The information 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 financial position, or cash flows of the University. Expenditures reported in the Schedule are reported on the cash basis of accounting. Federal awards provided to subrecipients are treated as expenditures when paid to the subrecipient. When applicable, 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. For purposes of the Schedule, federal awards have been identified into two types: Direct federal awards consisting of federal assistance and federal student financial aid; Pass‐through funds received from non‐federal organizations made under federally sponsored programs conducted by those organizations. Complete Federal Assistance Listing Numbers (FALN) are presented for those programs for which such numbers were available. FALN prefixes are presented for programs for which a complete FALN number is not available. Federal direct programs are presented by federal department and, where applicable, the funding agency within the department. Federal pass‐through programs are presented by the entity through which the University received the federal award. Amounts provided to subrecipients from each federal program have been separately identified for additional analysis. These pass‐through awards are included in total cash basis expenditures. The University administers the Pell Grant program, Supplemental Education Opportunity Grants, and other grant programs for students attending both the Norman and the Health Sciences Center campuses of the University. Grant revenues and expenditures under such programs for students attending these campuses are included in the financial statements of the Norman Campus. Therefore, the Norman Campus Schedule of Expenditures of Federal Awards includes expenditures under such programs for students attending these campuses. Federal contracts that do not meet the definition of Federal Domestic Assistance have been excluded from the Schedule as it was determined, based upon discussions with the University’s federal cognizant agency or by the nature of the contract, that such contracts do not represent auditable federal awards under the provisions of the Uniform Guidance. Also, fixed price and fixed rate programs have been excluded. De Minimis Rate Used: N Rate Explanation: The University has not elected to use the 10% de minimis cost rate. The Federal Perkins Loan Program is administered directly by the University. The beginning balance of loans outstanding (as of June 30, 2023) has been included as federal expenditures in the Schedule. As of June 30, 2024, the ending balance of the loans receivable under the Federal Perkins Loan Program was $3.3 million.