Audit 348416

Title: Basis of Presentation Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The Organization has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The Organization has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) includes the federal award activity of New Jersey City University Foundation, Inc. and Affiliate (the “Organization”) under programs of the federal government for the year ended June 30, 2024. The information in this 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 operation of the Organization, it is not intended to and does not present the consolidated financial position, changes in net assets, or cash flow of the Organization.

Title: Endowment Corpus Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The Organization has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The Organization has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. New Jersey City University (the University) received the following grants during fiscal years 2013 through 2018: Opening the Gate: Improving Mathematics Success for Science, Technology, Engineering and Mathematics (STEM) Careers (Opening the Gate), Closing the Completion Gap for HIS Community‐College Graduate at a Public Baccalaureate Institution (Closing the Gap), Picking Up the Pace: Ensuring Hispanic Degree Completion (Picking Up the Pace), and Proyecto Stem: Evidence‐Based Approaches to STEM Enrollment, Retention and Graduation At an Urban Public Hispanic‐Serving Institution (Proyecto STEM). The University passed through the endowment portion of these programs to the Organization. According to the grant award agreements, the endowment portion is restricted for a period of 20 years and required to be reported in accordance with accounting standards applicable to temporarily restricted net assets. For a period of 20 years from the date the grant was received, the endowment corpus cannot be spent or withdrawn. At the end of the 20-year period, the endowment corpus can be used for educational purposes. During the grant period, 50% of the total aggregate income earned on the endowment corpus can be spent or withdrawn and the remaining 50% is required to be added to the corpus. The total income earned on the endowment corpus for the fiscal year ended June 30, 2024, was $354,230, of which 50% will be distributed to the University for fiscal year ended June 30, 2025, and 50% has been added to the endowment corpus. The following represents the activity of the endowment corpus for the fiscal year ended June 30, 2024: