Audit 34649

Title: Endowment Award Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the "Schedule") includes the federal grant activity of San DiegoState University Research Foundation (the "SDSU Research Foundation") under the programs of the federal government for the yearended June 30, 2022. The information in the Schedule is presented in accordance with the requirements of Title 2 U.S. Code ofFederal 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 SDSU Research Foundation, itis not intended to, and does not, present the financial position, changes in net position, or cash flows of the Foundation. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, either the cost principles obtained in OMB Circular A-21, Cost Principles for Educational Institutions, or the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Pass-through entity identifying numbers are presented where available. SDSU Research Foundation has elected not to use the 10-percent de minimums indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The accompanying Schedule includes $11,515,091 in grants which consist of $10.0 million in corpus and $1,515,091 of investment earnings on the cumulative endowment corpus which is considered program income in accordance with the grant award terms from the National Institutes of Health (Federal Assistance Listing Number 93.307) to establish an endowment fund. The total amount of the endowment award is $10.0 million. This is considered a term endowment fund, which allows for the use of the corpus 20 years after the end of the grant period. It may be used for any purpose that expands or develops SDSUs minority and/or health disparities research capacity. Investment income realized in any year is not to be expended until the next year(s) of the award per program.guidelines.