Title: (1) General
Accounting Policies: (1) The accompanying Schedule of Expenditures of Federal Awards (the Schedule) presents the activity of all federal financial assistance programs of Southern Methodist University (the University). All federal awards passed through from other entities have been included in the Schedule. (2) The accompanying Schedule is presented using the accrual basis of accounting, which is described in note 1 to the University’s consolidated financial statements.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The accompanying Schedule of Expenditures of Federal Awards (the Schedule) presents the activity of all federal financial assistance programs of Southern Methodist University (the University). All federal awards passed through from other entities have been included in the Schedule.
Title: (2) Basis of Accounting
Accounting Policies: (1) The accompanying Schedule of Expenditures of Federal Awards (the Schedule) presents the activity of all federal financial assistance programs of Southern Methodist University (the University). All federal awards passed through from other entities have been included in the Schedule. (2) The accompanying Schedule is presented using the accrual basis of accounting, which is described in note 1 to the University’s consolidated financial statements.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The accompanying Schedule is presented using the accrual basis of accounting, which is described in note 1 to the University’s consolidated financial statements.
Title: (3) Relationship to Federal Financial Reports
Accounting Policies: (1) The accompanying Schedule of Expenditures of Federal Awards (the Schedule) presents the activity of all federal financial assistance programs of Southern Methodist University (the University). All federal awards passed through from other entities have been included in the Schedule. (2) The accompanying Schedule is presented using the accrual basis of accounting, which is described in note 1 to the University’s consolidated financial statements.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
Amounts reported in the accompanying Schedule may not agree with the amounts reported in the related federal financial reports filed with grantor agencies because of accruals which would be included in the next report filed with the agencies.
Title: (4) Perkins Loan Program
Accounting Policies: (1) The accompanying Schedule of Expenditures of Federal Awards (the Schedule) presents the activity of all federal financial assistance programs of Southern Methodist University (the University). All federal awards passed through from other entities have been included in the Schedule. (2) The accompanying Schedule is presented using the accrual basis of accounting, which is described in note 1 to the University’s consolidated financial statements.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
Under federal law, the authority for schools to make new loans under the Federal Perkins Loan Program ended on September 30, 2017, and final disbursements were permitted through June 30, 2018. The outstanding loan balance as of May 31, 2024 was $838,969. The amount reported on the Schedule of Expenditures of Federal Awards represents the outstanding loan balance of $1,063,198 as of May 31, 2023.
Title: (5) Federal Direct Loan Program
Accounting Policies: (1) The accompanying Schedule of Expenditures of Federal Awards (the Schedule) presents the activity of all federal financial assistance programs of Southern Methodist University (the University). All federal awards passed through from other entities have been included in the Schedule. (2) The accompanying Schedule is presented using the accrual basis of accounting, which is described in note 1 to the University’s consolidated financial statements.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
This program provides loans directly from the U.S. Department of Education to students with Federal Stafford, Grad PLUS and Parent PLUS loans rather than from a bank or other lending institution.
The University originates the loans and performs certain administrative duties. The institution has no repayment responsibilities, therefore the outstanding loans are not included in the University’s consolidated financial statements.
Title: (6) Subrecipients
Accounting Policies: (1) The accompanying Schedule of Expenditures of Federal Awards (the Schedule) presents the activity of all federal financial assistance programs of Southern Methodist University (the University). All federal awards passed through from other entities have been included in the Schedule. (2) The accompanying Schedule is presented using the accrual basis of accounting, which is described in note 1 to the University’s consolidated financial statements.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
Of the federal expenditures presented in the Schedule, the University provided federal awards to subrecipients in the Research & Development (R&D) Cluster totaling $2,578,952.
Title: (7) Indirect Cost Rate
Accounting Policies: (1) The accompanying Schedule of Expenditures of Federal Awards (the Schedule) presents the activity of all federal financial assistance programs of Southern Methodist University (the University). All federal awards passed through from other entities have been included in the Schedule. (2) The accompanying Schedule is presented using the accrual basis of accounting, which is described in note 1 to the University’s consolidated financial statements.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The University has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.