Title: BASIS OF PRESENTATION
Accounting Policies: For purposes of the Schedules, expenditures for federal and state programs are recognized on the accrual basis of accounting. Expenditures for federal student financial aid programs are recognized as incurred and include Federal Work-Study program earnings, certain other federal financial assistance grants for students and administrative cost allowances, where applicable. Expenditures for non-financial aid awards include indirect costs. Indirect costs allocated to applicable awards for the year ended June 30, 2024, were based on predetermined fixed rates negotiated with the College’s cognizant federal agency, the Department of Health and Human Services and with the State of Tennessee. Indirect costs and recoveries of those costs under sponsored programs are classified as unrestricted expenditures and revenues, respectively, in the College’s consolidated financial statements.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The schedule of expenditures of federal awards includes the federal grant activity of Meharry Medical College, and is presented in accordance with accounting principles generally accepted in the United State of America, which is the same basis of accounting as the basic financial statements. The information in this schedule is presented as required by Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards.
The accompanying Schedules of Expenditures of Federal and State Awards (the Schedules) summarize the expenditures and disbursements of Meharry Medical College (the College) under programs of the federal and state governments for the year ended June 30, 2024. Because the Schedules present only a selected portion of the operations of the College, they are not intended to and do not present the financial position, changes in net assets or cash flows of the College.
For the purposes of the schedules, federal awards include all grants, contracts, and similar agreements entered into directly between the College and agencies or departments of the federal government and all sub awards to the College by non-federal organizations pursuant to federal grants, contracts, and similar agreements. The awards are classified into major program and nonmajor program categories as required by Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. The College has not elected to use the 10% de minimis indirect cost rate.
Title: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES FOR FEDERAL EXPENDITURES
Accounting Policies: For purposes of the Schedules, expenditures for federal and state programs are recognized on the accrual basis of accounting. Expenditures for federal student financial aid programs are recognized as incurred and include Federal Work-Study program earnings, certain other federal financial assistance grants for students and administrative cost allowances, where applicable. Expenditures for non-financial aid awards include indirect costs. Indirect costs allocated to applicable awards for the year ended June 30, 2024, were based on predetermined fixed rates negotiated with the College’s cognizant federal agency, the Department of Health and Human Services and with the State of Tennessee. Indirect costs and recoveries of those costs under sponsored programs are classified as unrestricted expenditures and revenues, respectively, in the College’s consolidated financial statements.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
For purposes of the Schedules, expenditures for federal and state programs are recognized on the accrual basis of accounting.
Expenditures for federal student financial aid programs are recognized as incurred and include Federal Work-Study program earnings, certain other federal financial assistance grants for students and administrative cost allowances, where applicable. Expenditures for non-financial aid awards include indirect costs. Indirect costs allocated to applicable awards for the year ended June 30, 2024, were based on predetermined fixed rates negotiated with the College’s cognizant federal agency, the Department of Health and Human Services and with the State of Tennessee. Indirect costs and recoveries of those costs under sponsored programs are classified as unrestricted expenditures and revenues, respectively, in the College’s consolidated financial statements.
Title: FEDERAL LOAN PROGRAMS
Accounting Policies: For purposes of the Schedules, expenditures for federal and state programs are recognized on the accrual basis of accounting. Expenditures for federal student financial aid programs are recognized as incurred and include Federal Work-Study program earnings, certain other federal financial assistance grants for students and administrative cost allowances, where applicable. Expenditures for non-financial aid awards include indirect costs. Indirect costs allocated to applicable awards for the year ended June 30, 2024, were based on predetermined fixed rates negotiated with the College’s cognizant federal agency, the Department of Health and Human Services and with the State of Tennessee. Indirect costs and recoveries of those costs under sponsored programs are classified as unrestricted expenditures and revenues, respectively, in the College’s consolidated financial statements.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The College administers certain federal loan programs. These loan programs are part of the student financial aid program cluster for reporting purposes and related loan balances are reported in student loans receivable, net, in the consolidated financial statements. Total loan disbursements from the Department of Education and the Department of Health and Human Services for student financial assistance programs for the fiscal year ended June 30, 2024, are identified below:
Title: FEDERAL DIRECT STUDENT LOANS
Accounting Policies: For purposes of the Schedules, expenditures for federal and state programs are recognized on the accrual basis of accounting. Expenditures for federal student financial aid programs are recognized as incurred and include Federal Work-Study program earnings, certain other federal financial assistance grants for students and administrative cost allowances, where applicable. Expenditures for non-financial aid awards include indirect costs. Indirect costs allocated to applicable awards for the year ended June 30, 2024, were based on predetermined fixed rates negotiated with the College’s cognizant federal agency, the Department of Health and Human Services and with the State of Tennessee. Indirect costs and recoveries of those costs under sponsored programs are classified as unrestricted expenditures and revenues, respectively, in the College’s consolidated financial statements.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The College is responsible only for the performance of certain administrative duties with respect to federal direct student loans and accordingly, these loans are not included in the consolidated financial statements. The loans processed are included in the Schedule of Expenditures of Federal Awards as part of the student financial aid cluster. During the fiscal year ending June 30, 2024 the College processed the following amount of new loans under the Federal Direct Student Loan program: