Audit 332778

Title: Federal Student Loan Programs Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (Schedule) includes the federal award activity of Eastern Mennonite University under programs of the federal government for the year ended June 30, 2023. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) 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 Eastern Mennonite University, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Eastern Mennonite University. Direct payments: Assistance received directly from the Federal government is classified as direct payments on the Schedule. Major federal programs: The Single Audit Act Amendments of 1996 and the Uniform Guidance establish the criteria to be used for defining major federal programs. At June 30, 2023, Eastern Mennonite University had several federal programs which were considered to be major federal programs in accordance with the Uniform Guidance. Federal Assistance Listing: The Federal Assistance Listing is a government-wide compendium of individual federal programs. Each program included in the catalog is assigned a five-digit program identification number (Federal Assistance Listing Number), which is reflected in the Schedule. Cluster of programs: Closely related programs that share common compliance requirements are grouped into clusters of programs. A cluster of programs is considered as one Federal program for determining major federal programs. The following is the cluster administered by Eastern Mennonite University: Student Financial Assistance. Expenditures reported on the Schedule are reported on the acrual 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: N Rate Explanation: The auditee did not use the de minimis cost rate. The Federal Student Loan Programs listed subsequently are administered directly by the University, and balances and transactions relating to these programs are included in the financial statements. Loans outstanding at the beginning of the year and loans made during the year included in the Federal expenditures presented in the Schedule. The balances of loans outstanding at June 30, 2024 consisted of Federal Perkins Loan Program (84.038): $478,718 outstanding and Nursing Studnet Loans (93.364): $686,273