Title: NOTE 1 - BASIS OF PRESENTATION AND OVERSIGHT AND COGNIZANT AGENCIES
Accounting Policies: Expenditures reported on the Schedules 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.
De Minimis Rate Used: N
Rate Explanation: The University has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The University has an approved allowable indirect cost rate.
The accompanying schedules of expenditures of federal and state awards (the Schedules) include the federal and state award activity of Milwaukee School of Engineering (the University) under programs of the federal and state government for the year ended June 30, 2024. The information in these Schedules 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) and the Wisconsin State Single Audit Guidelines (Guidelines). For purposes of these Schedules, federal programs have been classified as follows: 1) Individual Programs and Other Clusters; 2) the Research and Development Program (R&D) Cluster, including R&D grants received directly from the federal government and R&D subgrants received from other organizations (pass-throughs); 3) the Student Financial Assistance Program (SFA) Cluster.
Direct federal awards and subgrants are presented for each federal agency by the Assistance Listing Number (ALN) when available in the grant agreements or determinable based on a grant's source and purpose.
Because these Schedules present only a select portion of the operations of the University, they are not intended to and do not present the consolidated financial position, consolidated changes in net assets or consolidated cash flows of the University.
The University’s federal oversight agency for audit is the U.S. Department of Education. The University’s state cognizant agency is the Wisconsin Higher Educational Aids Board.
Title: NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Accounting Policies: Expenditures reported on the Schedules 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.
De Minimis Rate Used: N
Rate Explanation: The University has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The University has an approved allowable indirect cost rate.
Expenditures reported on the Schedules 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.
Title: NOTE 3 - INDIRECT COST RATE
Accounting Policies: Expenditures reported on the Schedules 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.
De Minimis Rate Used: N
Rate Explanation: The University has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The University has an approved allowable indirect cost rate.
The University has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The University has an approved allowable indirect cost rate.
Title: NOTE 4 - FEDERAL STUDENT LOAN PROGRAM
Accounting Policies: Expenditures reported on the Schedules 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.
De Minimis Rate Used: N
Rate Explanation: The University has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The University has an approved allowable indirect cost rate.
The Federal Perkins loan program is administered directly by the University, and balances and transactions relating to this program are included in loans to students in the University’s consolidated financial statements. The beginning balance plus the loans made during the year are included in the federal expenditures presented in the Schedule. The balance of loans outstanding at June 30, 2024 is $254,453.
The Extension Act amended section 461 of the Higher Education Act to end the University’s authority to make new Perkins Loans after June 30, 2018. The University is not required to assign the outstanding Perkins Loans to the Department or liquidate their Perkins Loan Revolving Funds due to the wind-down of the Perkins Loan Program, however, the University may choose to liquidate at any time in the future. As of June 30, 2024, the University continues to service the Perkins Loan Program.
Title: NOTE 5 - COLLEGE MATCHING FUNDS
Accounting Policies: Expenditures reported on the Schedules 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.
De Minimis Rate Used: N
Rate Explanation: The University has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The University has an approved allowable indirect cost rate.
The Schedule includes only federal and state awards expended for the various programs. The University is required to provide matching funds for certain federal programs. The total amount of matching funds provided by the University was $138,352 and $55,689 for federal and state programs, respectively, during fiscal year 2024.
Title: NOTE 6 - ADMINISTRATIVE COST ALLOWANCE
Accounting Policies: Expenditures reported on the Schedules 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.
De Minimis Rate Used: N
Rate Explanation: The University has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The University has an approved allowable indirect cost rate.
The Student Financial Assistance Programs allowable expenditures for the fiscal year 2024 include amounts claimed for administrative costs of $3,340.
Title: NOTE 7 - PROGRAMS BY AGENCY
Accounting Policies: Expenditures reported on the Schedules 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.
De Minimis Rate Used: N
Rate Explanation: The University has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The University has an approved allowable indirect cost rate.
The University received the following federal awards by department: U.S. Department of Education $19,501,140 U.S. Department of Health and Human Services 184,608 National Aeronautics and Space Administration 13,365 National Science Foundation 374,748 Total federal awards $20,073,861
Title: NOTE 8 - SUBRECIPIENTS
Accounting Policies: Expenditures reported on the Schedules 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.
De Minimis Rate Used: N
Rate Explanation: The University has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The University has an approved allowable indirect cost rate.
There were no federal or state expenditures issued to subrecipients for the fiscal year 2024.