Title: Basis of presentation
Accounting Policies: For purposes of the Schedule, expenditures for federal and state programs are recognized on the accrual basis of accounting.
Expenditures for federal student financial aid programs are recognized as incurred. These programs included Federal Pell program grants to students, the federal share of students' Federal Supplemental Educational Opportunity Grant (FSEOG) program grants, Federal Work-Study (FWS) program earnings, and certain other federal financial assistance grants for students and administrative cost allowances, where applicable. The amount of Pell grant disbursements does not include the administrative cost allowances totaling $4,215 for 2024.
The University elected not to use the 10% de minimis indirect cost rate. Additionally, no amounts were passed through to a subrecipient.
De Minimis Rate Used: N
Rate Explanation: The University elected not to use the 10% de minimis indirect cost rate.
The accompanying Schedule of Expenditures of Federal Awards and State Financial Assistance (the "Schedule") summarizes the expenditures of Lipscomb University (the "University") under federal and state programs for the year ended May 31, 2024. The information in the 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 consolidated financial position, changes in net assets or cash
flows of the University.
The University receives federal awards primarily from the United States Department of Education to provide financial assistance to eligible students through direct grants and loan programs. In accordance with the Department of Education's guidelines, the University is allowed to utilize a certain percentage of the federal awards for allowable administrative expenses related to the grant, work-study and student
loan programs offered to students.
For purposes of the Schedule, federal and state awards include all grants, contracts and similar agreements entered into directly between the University and agencies and departments of the federal government and all subawards to the University by nonfederal organizations pursuant to federal grants, contracts, and similar agreements as well as awards received directly from the State of Tennessee.
Title: Guaranteed loan programs
Accounting Policies: For purposes of the Schedule, expenditures for federal and state programs are recognized on the accrual basis of accounting.
Expenditures for federal student financial aid programs are recognized as incurred. These programs included Federal Pell program grants to students, the federal share of students' Federal Supplemental Educational Opportunity Grant (FSEOG) program grants, Federal Work-Study (FWS) program earnings, and certain other federal financial assistance grants for students and administrative cost allowances, where applicable. The amount of Pell grant disbursements does not include the administrative cost allowances totaling $4,215 for 2024.
The University elected not to use the 10% de minimis indirect cost rate. Additionally, no amounts were passed through to a subrecipient.
De Minimis Rate Used: N
Rate Explanation: The University elected not to use the 10% de minimis indirect cost rate.
The University is responsible for the performance of certain administrative duties with respect to guaranteed loan programs. It is not necessary to determine the balance of loans outstanding to students and former students of the University under these programs for the year ended May 31, 2024 as the
University has no liability for these loans; and therefore, the loans are not included in the University's consolidated financial statements.
Title: Federal Perkins Loan Program
Accounting Policies: For purposes of the Schedule, expenditures for federal and state programs are recognized on the accrual basis of accounting.
Expenditures for federal student financial aid programs are recognized as incurred. These programs included Federal Pell program grants to students, the federal share of students' Federal Supplemental Educational Opportunity Grant (FSEOG) program grants, Federal Work-Study (FWS) program earnings, and certain other federal financial assistance grants for students and administrative cost allowances, where applicable. The amount of Pell grant disbursements does not include the administrative cost allowances totaling $4,215 for 2024.
The University elected not to use the 10% de minimis indirect cost rate. Additionally, no amounts were passed through to a subrecipient.
De Minimis Rate Used: N
Rate Explanation: The University elected not to use the 10% de minimis indirect cost rate.
The Federal Perkins Loan Program is administered directly by the University and balances and transactions relating to this program are included in the University's consolidated financial statements. The authority to make new loans under this program ended on June 30, 2018. In 2018, the Department of Education enacted procedures to return the notes receivable from debtors to the Department of Education, and the Department of Education would service the collection of the loans. As of April 2024, the University assigned all Perkins loans to the Department of Education and the University completed the Perkins Loan Program termination. The balance of these loans as shown on the Consolidated Statements of Financial Position on May 31, 2023 was $16,513. No balance remained on May 31, 2024. During the fiscal years ended May 31, 2024 and 2023, the University returned from its Perkins Loan Program $36,565 and $181,313, respectively, to the Department of Education and reimbursed itself $4,152 and $24,990, respectively, for prior years expenses incurred in operating the loan program. Throughout the termination of the Perkins Loan
Program, the University continued to collect principal and interest on the outstanding loans.