Title: Note 1. Basis of Presentation
Accounting Policies: The accounting principles followed by Indiana State University and used in preparing the
accompanying schedule are as follows:
Awards Other Than Student Financial Assistance
Deductions (expenditures) for direct costs are recognized as incurred using the accrual method
of accounting and the cost accounting principles contained in Uniform Guidance. Under those
cost principles, certain types of expenditures are not allowable or are limited as to
reimbursement. Moreover, expenditures include a portion of costs associated with general
university activities (indirect costs) which are allocated to federal awards under negotiated
formulas commonly referred to as indirect cost rates.
INDIANA STATE BOARD OF ACCOUNTS
14
INDIANA STATE UNIVERSITY
NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
(Continued)
Student Financial Assistance
Expenditures for non-loan awards made to students are recognized and reported in the
Schedule. Student loan programs are funded by the federal government under various
programs; e.g., Perkins Student Loan Program. Activity related to these loan programs includes
federal capital contributions, loan repayments, interest earned on loans, cancellation of loans,
and administrative and collection costs.
De Minimis Rate Used: N
Rate Explanation: Indiana State University did not elect to use the 10% de minimis cost rate. The University uses
a federally negotiated facilities & administration rate of 31.1% on federal awards when the rate is
not restricted by federal regulation. This facilities & administration rate was approved by the US
Department of Health & Human Services and is effective from 7/1/2021 through 6/30/2026.
Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Costs
Principles, and Audit Requirements for Federal Awards (Uniform Guidance) requires an annual
audit of any entity expending a total amount of federal awards equal to or in excess of $750,000
in any fiscal year unless by constitution or statute a less frequent audit is required. In accordance
with the Indiana Code (IC 5-11-1 et seg.), audits of universities shall be conducted annually.
The accompanying Schedule of Expenditures of Federal Awards (Schedule) includes the federal
grant activity of Indiana State University for the year ended June 30, 2024 and is presented in
accordance with the requirements of Uniform Guidance. The accompanying Schedule has been
prepared in a format that presents summary financial information of the federal funds awarded to
Indiana State University directly from federal agencies as well as amounts received as a
subgrantee of other organizations. For purposes of the Schedule, federal assistance includes all
federal assistance and procurement relationships entered into directly between Indiana State
University and the federal government and subawards from nonfederal organizations made
under federally sponsored agreements. Accordingly, the amount of federal awards expended is
based on when the activity related to the award occurs. Because the Schedule presents only a
selective portion of the activities of Indiana State University, it is not intended to and does not
present the financial position, change in financial position, or cash flows of Indiana State
University.
Indiana State University did not elect to use the 10% de minimis cost rate. The University uses
a federally negotiated facilities & administration rate of 31.1% on federal awards when the rate is
not restricted by federal regulation. This facilities & administration rate was approved by the US
Department of Health & Human Services and is effective from 7/1/2021 through 6/30/2026.
The accounting principles followed by Indiana State University and used in preparing the
accompanying schedule are as follows:
Awards Other Than Student Financial Assistance
Deductions (expenditures) for direct costs are recognized as incurred using the accrual method
of accounting and the cost accounting principles contained in Uniform Guidance. Under those
cost principles, certain types of expenditures are not allowable or are limited as to
reimbursement. Moreover, expenditures include a portion of costs associated with general
university activities (indirect costs) which are allocated to federal awards under negotiated
formulas commonly referred to as indirect cost rates.
INDIANA STATE BOARD OF ACCOUNTS
14
INDIANA STATE UNIVERSITY
NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
(Continued)
Student Financial Assistance
Expenditures for non-loan awards made to students are recognized and reported in the
Schedule. Student loan programs are funded by the federal government under various
programs; e.g., Perkins Student Loan Program. Activity related to these loan programs includes
federal capital contributions, loan repayments, interest earned on loans, cancellation of loans,
and administrative and collection costs.
Title: Note 2. Federal Direct Student Loans
Accounting Policies: The accounting principles followed by Indiana State University and used in preparing the
accompanying schedule are as follows:
Awards Other Than Student Financial Assistance
Deductions (expenditures) for direct costs are recognized as incurred using the accrual method
of accounting and the cost accounting principles contained in Uniform Guidance. Under those
cost principles, certain types of expenditures are not allowable or are limited as to
reimbursement. Moreover, expenditures include a portion of costs associated with general
university activities (indirect costs) which are allocated to federal awards under negotiated
formulas commonly referred to as indirect cost rates.
INDIANA STATE BOARD OF ACCOUNTS
14
INDIANA STATE UNIVERSITY
NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
(Continued)
Student Financial Assistance
Expenditures for non-loan awards made to students are recognized and reported in the
Schedule. Student loan programs are funded by the federal government under various
programs; e.g., Perkins Student Loan Program. Activity related to these loan programs includes
federal capital contributions, loan repayments, interest earned on loans, cancellation of loans,
and administrative and collection costs.
De Minimis Rate Used: N
Rate Explanation: Indiana State University did not elect to use the 10% de minimis cost rate. The University uses
a federally negotiated facilities & administration rate of 31.1% on federal awards when the rate is
not restricted by federal regulation. This facilities & administration rate was approved by the US
Department of Health & Human Services and is effective from 7/1/2021 through 6/30/2026.
The Schedule of Expenditures of Federal Awards includes Federal Direct Student Loans which
were not made by Indiana State University but were received by its students. Indiana State
University is responsible only for the performance of certain administrative duties with respect to
these loans.
The number of guaranteed loans and the total amount processed for each Direct Loan Program
for the year ended June 30, 2024 were as follows:
Title: Note 3. Federal Perkins Student Loan Program
Accounting Policies: The accounting principles followed by Indiana State University and used in preparing the
accompanying schedule are as follows:
Awards Other Than Student Financial Assistance
Deductions (expenditures) for direct costs are recognized as incurred using the accrual method
of accounting and the cost accounting principles contained in Uniform Guidance. Under those
cost principles, certain types of expenditures are not allowable or are limited as to
reimbursement. Moreover, expenditures include a portion of costs associated with general
university activities (indirect costs) which are allocated to federal awards under negotiated
formulas commonly referred to as indirect cost rates.
INDIANA STATE BOARD OF ACCOUNTS
14
INDIANA STATE UNIVERSITY
NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
(Continued)
Student Financial Assistance
Expenditures for non-loan awards made to students are recognized and reported in the
Schedule. Student loan programs are funded by the federal government under various
programs; e.g., Perkins Student Loan Program. Activity related to these loan programs includes
federal capital contributions, loan repayments, interest earned on loans, cancellation of loans,
and administrative and collection costs.
De Minimis Rate Used: N
Rate Explanation: Indiana State University did not elect to use the 10% de minimis cost rate. The University uses
a federally negotiated facilities & administration rate of 31.1% on federal awards when the rate is
not restricted by federal regulation. This facilities & administration rate was approved by the US
Department of Health & Human Services and is effective from 7/1/2021 through 6/30/2026.
Indiana State University participates in the Federal Perkins Loan Program. A revolving loan fund
is maintained for the administration of the Program, the balances and transactions relating to the
program are included in the University's financial statements. The Schedule of Federal
Expenditures includes the entire amount of the revolving loan fund including the outstanding
loans to students. The following schedule represents loans outstanding as of June 30, 2024: