Notes to SEFA
Title: 1. Basis of Presentation
Accounting Policies: Sponsored Research (Research and Development) and Other Awards–Expenditures for direct costs are recognized as incurred using the accrual method of accounting and the cost accounting principles contained in the Uniform Guidance. Under those cost principles, expenditures also include a portion of costs associated with general University activities (indirect costs) which are allocated to federal and state awards under negotiated formulas commonly referred to as facilities and administrative cost rates.
Student Financial Assistance–Expenditures are recognized on the accrual basis for both awards made to students and allowable administrative expenses of running such programs.
De Minimis Rate Used: N
Rate Explanation: Facilities and administrative costs are allocated as a percentage of direct cost based on negotiated rates. These predetermined fixed rates are negotiated with Princeton’s cognizant federal agency, the Department of Health and Human Services. Princeton has elected not to use the 10-percent de minimis indirect cost rate as allowed under Section 200.414 of the Uniform Guidance.
The accompanying Schedule of Expenditures of Federal Awards and Schedule of Expenditures of State of New Jersey Awards (the “Schedules”) have been prepared 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) and the New Jersey Department of Treasury Circular Letter 15-08 Office of Management and Budget, Single audit Policy for Recipients of Federal Grants, State Grants and State Aid and The New Jersey Higher Education Student Assistance Authority Supplement, as applicable. The purpose of the Schedules is to present a summary of the activities of Princeton University (the “University”) for the year ended June 30, 2024, which have been financed by the U.S. Government and the State of New Jersey, respectively. For purposes of the Schedules, federal and state awards include all federal and state financial assistance relationships entered into directly between the University and the federal government or the State of New Jersey and sub awards from nonfederal and nonstate organizations made under federally or state sponsored agreements. Negative amounts listed on the Schedules represent adjustments, in the normal course of business, to amounts included on the prior year’s Schedules. The pass-through entity identifying number on the Schedules represents the identification number assigned by the prime to the applicable program. Assistance Listing Numbers (“ALN”) and pass-through numbers are provided when applicable. Certain awards reference an internal management identifier when no sponsor identifier is available. Because the Schedules present only a selected portion of the activities of the University, they are not intended to and do not present either the financial position, changes in net assets or cash flows of the University.
Consistent with the provisions of OMB Uniform Guidance, the Schedule of Expenditures of Federal Awards does not include expenditures of the Princeton Plasma Physics Laboratory (“PPPL”) that were funded by Department of Energy (“DOE”) contract. The PPPL, a national laboratory operated and managed by the University under contract directly with DOE, represents a government-owned, contractor operated (GOCO) facility. GOCOs are excluded from the provisions of the OMB Uniform Guidance (section 200.38 – Federal award).
The accounting principles followed by the University in preparing the Schedules are as follows:
Sponsored Research (Research and Development) and Other Awards–Expenditures for direct costs are recognized as incurred using the accrual method of accounting and the cost accounting principles contained in the Uniform Guidance. Under those cost principles, expenditures also include a portion of costs associated with general University activities (indirect costs) which are allocated to federal and state awards under negotiated formulas commonly referred to as facilities and administrative cost rates.
Student Financial Assistance–Expenditures are recognized on the accrual basis for both awards made to students and allowable administrative expenses of running such programs.
Certain awards on the Schedule of Expenditures of State Awards have award end dates in 2021, however the University was only awarded the grants in fiscal year 2024. Expenditures were reported in the fiscal year in which the grant approval was received from the agency.
Title: 2. Facility and Administrative Costs
Accounting Policies: Sponsored Research (Research and Development) and Other Awards–Expenditures for direct costs are recognized as incurred using the accrual method of accounting and the cost accounting principles contained in the Uniform Guidance. Under those cost principles, expenditures also include a portion of costs associated with general University activities (indirect costs) which are allocated to federal and state awards under negotiated formulas commonly referred to as facilities and administrative cost rates.
Student Financial Assistance–Expenditures are recognized on the accrual basis for both awards made to students and allowable administrative expenses of running such programs.
De Minimis Rate Used: N
Rate Explanation: Facilities and administrative costs are allocated as a percentage of direct cost based on negotiated rates. These predetermined fixed rates are negotiated with Princeton’s cognizant federal agency, the Department of Health and Human Services. Princeton has elected not to use the 10-percent de minimis indirect cost rate as allowed under Section 200.414 of the Uniform Guidance.
Facilities and administrative costs are allocated as a percentage of direct cost based on negotiated rates. These predetermined fixed rates are negotiated with Princeton’s cognizant federal agency, the Department of Health and Human Services. Princeton has elected not to use the 10-percent de minimis indirect cost rate as allowed under Section 200.414 of the Uniform Guidance.
Title: 3. Student Financial Assistance
Accounting Policies: Sponsored Research (Research and Development) and Other Awards–Expenditures for direct costs are recognized as incurred using the accrual method of accounting and the cost accounting principles contained in the Uniform Guidance. Under those cost principles, expenditures also include a portion of costs associated with general University activities (indirect costs) which are allocated to federal and state awards under negotiated formulas commonly referred to as facilities and administrative cost rates.
Student Financial Assistance–Expenditures are recognized on the accrual basis for both awards made to students and allowable administrative expenses of running such programs.
De Minimis Rate Used: N
Rate Explanation: Facilities and administrative costs are allocated as a percentage of direct cost based on negotiated rates. These predetermined fixed rates are negotiated with Princeton’s cognizant federal agency, the Department of Health and Human Services. Princeton has elected not to use the 10-percent de minimis indirect cost rate as allowed under Section 200.414 of the Uniform Guidance.
Amounts reported in the schedule of expenditures of federal awards for the Federal Perkins LoanProgram (84.038) represent the Perkins Revolving Loan Fund outstanding at the beginning of theyear. The balance of Federal Perkins loans outstanding as of June 30, 2024 was $562,576. TheUniversity did not receive a federal capital contribution nor make any matching contribution to theFederal Perkins Loan fund in 2024. An administrative cost allowance associated with expendituresrelated to Federal Work Study and Federal SEOG is included in the Schedules where applicable.
The University participates in the Federal Direct Loan Program (84.268), which includessubsidized and unsubsidized Federal Stafford Loans (“Stafford”) and Federal PLUS Loans(“PLUS”). Even though the University is not the recipient of the funds and loans under the FederalDirect Loan Program, which are made to students, such programs are considered a component ofthe student financial assistance program at the University. The Schedules include the amountsawarded to students during the year ended June 30, 2024. It is not practical to estimate theoutstanding balance of loans under this program.