Title: Basis of Presentation
Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) summarizes the expenditures of the University of Rochester and its related entities (the “University”) under programs of the federal government for the year ended June 30, 2024. The information in the Schedule is presented on the accrual basis of accounting, which is in accordance with the 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 the federal award activity of the University, it is not intended to and does not present the financial position, changes in net assets and cash flows of the University.
De Minimis Rate Used: N
Rate Explanation: See Note 2.
The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) summarizes the expenditures of the University of Rochester and its related entities (the “University”) under programs of the federal government for the year ended June 30, 2024. The information in the Schedule is presented on the accrual basis of accounting, which is in accordance with the 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 the federal award activity of the University, it is not intended to and does not present the financial position, changes in net assets and cash flows of the University.
For purposes of the Schedule, federal awards include all grants, contracts and similar agreements entered directly between the University and agencies and departments of the federal government and all sub-awards to the University by nonfederal organizations pursuant to federal grants, contracts, and similar agreements.
Negative numbers in the Schedule represent adjustments to amounts reported in prior years in the normal course of business. Federal Assistance listing numbers and pass-through numbers are provided when available.
Title: Facilities and Administrative Cost Rates
Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) summarizes the expenditures of the University of Rochester and its related entities (the “University”) under programs of the federal government for the year ended June 30, 2024. The information in the Schedule is presented on the accrual basis of accounting, which is in accordance with the 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 the federal award activity of the University, it is not intended to and does not present the financial position, changes in net assets and cash flows of the University.
De Minimis Rate Used: N
Rate Explanation: See Note 2.
The University had predetermined facilities and administrative cost rates for the year ended June 30, 2024, under a rate agreement with the Department of Health and Human Services, the University’s federal cognizant agency. The base rate for on-campus research was 54.0% for fiscal year 2024. The base rate for off-campus research was 24.0% for fiscal 2024, and th base rate for modified off-campus was 27% for fiscal year 2024. The University does not utilize the 10% de minimis cost rate described in section 200.414 of Uniform Guidance.
Title: Loan Programs
Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) summarizes the expenditures of the University of Rochester and its related entities (the “University”) under programs of the federal government for the year ended June 30, 2024. The information in the Schedule is presented on the accrual basis of accounting, which is in accordance with the 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 the federal award activity of the University, it is not intended to and does not present the financial position, changes in net assets and cash flows of the University.
De Minimis Rate Used: N
Rate Explanation: See Note 2.
The Federal Perkins Loan Program and the Federal Nursing Student Loan Program are administered directly by the University and balances and transactions relating to these programs are included in the University’s consolidated financial statements. The amount of Federal Perkins loans and Federal Nursing Student loans outstanding on June 30, 2024, totaled $2,842,663 and $730,406, respectively. Loans outstanding at the beginning of the year and loans made during the year are included in the federal expenditures presented in the Schedule.
Title: CARES Act Provider Relief Funds
Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) summarizes the expenditures of the University of Rochester and its related entities (the “University”) under programs of the federal government for the year ended June 30, 2024. The information in the Schedule is presented on the accrual basis of accounting, which is in accordance with the 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 the federal award activity of the University, it is not intended to and does not present the financial position, changes in net assets and cash flows of the University.
De Minimis Rate Used: N
Rate Explanation: See Note 2.
The Schedule includes grant activity related to the Department of Health and Human Services ("HHS") Provider Relief Fund and American Rescue Plan (ARP) Distribution Assistance Listing Number 93.498. As required based on guidance in the 2024 OMB Compliance Supplement, the Schedule includes all Period 6 funds received between July 1, 2022 and December 31, 2022 and expended by December 31, 2023 as reported to HRSA via the Provider Relief Funding Reporting Portal.
The Schedule thus includes $13,194,979 of reportable Provider Relief Payments which includes $4,977,345 of direct expenditures and $8,217,633 in lost revenue. Given the timing covered by Period 6, certain expenses were reflected in the University's fiscal year 2023 consolidated financial statements. Additionally, lost revenue does not represent an expenditure in the University’s consolidated financial statements and thus is a reconciling item between the federal expenses in the University’s consolidated financial statements and the amount included on the Schedule.
Title: Federal Emergency Management Agency (FEMA) Public Assistance
Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) summarizes the expenditures of the University of Rochester and its related entities (the “University”) under programs of the federal government for the year ended June 30, 2024. The information in the Schedule is presented on the accrual basis of accounting, which is in accordance with the 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 the federal award activity of the University, it is not intended to and does not present the financial position, changes in net assets and cash flows of the University.
De Minimis Rate Used: N
Rate Explanation: See Note 2.
The University applied for reimbursement of certain expenses related to the COVID-19 pandemic under Assistance Listing number 97.036, FEMA Disaster Grants - Public Assistance (Presidentially Declared Disasters) through the New York State Division of Homeland Security and Emergency Services. Expenditures are reflected in the Schedule in the year in which a project application is obligated. The Schedule thus includes $1,926,011 of expenditures which were obligated in fiscal year 2024 and incurred prior to fiscal year 2024, and therefore represents a reconciling item between the federal expenses in the University’s financial statements and the amount included on the Schedule.
Title: Federal Expenditures Not Included in the Compliance Audit
Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) summarizes the expenditures of the University of Rochester and its related entities (the “University”) under programs of the federal government for the year ended June 30, 2024. The information in the Schedule is presented on the accrual basis of accounting, which is in accordance with the 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 the federal award activity of the University, it is not intended to and does not present the financial position, changes in net assets and cash flows of the University.
De Minimis Rate Used: N
Rate Explanation: See Note 2.
As discussed in footnote 1 (b) of the University’s consolidated financial statements, the University became the sole corporate member of Finger Lakes Regional Health System, Inc., and subsidiaries (“Finger Lakes Health”) on August 1, 2023. The University’s basic consolidated financial statements include the operations of Finger Lakes Health for the period August 1, 2023, through June 30, 2024. Finger Lakes Health expended $369,333 in federal awards from the period August 1, 2023 through December 31, 2023 which is not included in the University’s schedule of expenditures of federal awards for the year ended June 30, 2024. Finger Lakes Health engaged other auditors to perform an audit over this period in accordance with the Uniform Guidance. The significant deficiency reported in the other auditors’ report has been addressed within the Summary Schedule of Prior Audit Findings section of this report.