Audit 357691

Title: 1. Basis of Presentation Accounting Policies: For purposes of the Schedule, expenditures for federal award programs are recognized on the accrual basis of accounting unless otherwise directed by the terms and conditions of the underlying awards. Such expenditures are recognized following the cost principles contained in the Uniform Guidance wherein certain types of expenditures are not allowable or are limited to reimbursement. De Minimis Rate Used: N Rate Explanation: The University applies its predetermined approved facilities and administrative rate when charging indirect costs to federal awards rather than the 10% de minimis cost rate as described in Section 200.414 of the Uniform Guidance. The University's final F&A cost rates are effective from October 1, 2023 through September 30, 2024. The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) summarizes the federal expenditures of The University of Alabama (the “University”), a campus of the University of Alabama System, under programs of the federal government for the year ended September 30, 2024. The federal expenditures of the other campuses of the University of Alabama System are presented in separate reports. 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). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements of the University. The component units of the University include The Crimson Tide Foundation, The National Alumni Association of The University of Alabama, The University of Alabama Law School Foundation, The University of Alabama Donor Advised Fund, The Capstone Health Services Foundation, The Capstone Foundation, and The 1831 Foundation. These component units are not subject to requirements of Uniform Guidance because they receive no federal awards. For purposes of the Schedule, federal awards include all grants, contracts, and similar agreements entered into directly between the University and agencies and departments of the federal government and all subawards to the University by nonfederal organizations pursuant to federal grants, contracts, and similar agreements. Negative amounts represent adjustments or credits to amounts reported as expenditures in prior years. Assistance Listing numbers and pass-through numbers are provided when available. In 2023, the University received three permanent endowment funds from the U.S. Department of Education (84.116Z). The fair value of the funds endowed during the fiscal year are included in the federal expenditures presented in the Schedule. A summary of the permanent endowments are as follows: see Notes to the SEFA for chart/table.

Title: 2. Summary of Significant Accounting Policies Accounting Policies: For purposes of the Schedule, expenditures for federal award programs are recognized on the accrual basis of accounting unless otherwise directed by the terms and conditions of the underlying awards. Such expenditures are recognized following the cost principles contained in the Uniform Guidance wherein certain types of expenditures are not allowable or are limited to reimbursement. De Minimis Rate Used: N Rate Explanation: The University applies its predetermined approved facilities and administrative rate when charging indirect costs to federal awards rather than the 10% de minimis cost rate as described in Section 200.414 of the Uniform Guidance. The University's final F&A cost rates are effective from October 1, 2023 through September 30, 2024. For purposes of the Schedule, expenditures for federal award programs are recognized on the accrual basis of accounting unless otherwise directed by the terms and conditions of the underlying awards. Such expenditures are recognized following the cost principles contained in the Uniform Guidance wherein certain types of expenditures are not allowable or are limited to reimbursement.

Title: 3. Facilities and Administrative "F&A" Costs Accounting Policies: For purposes of the Schedule, expenditures for federal award programs are recognized on the accrual basis of accounting unless otherwise directed by the terms and conditions of the underlying awards. Such expenditures are recognized following the cost principles contained in the Uniform Guidance wherein certain types of expenditures are not allowable or are limited to reimbursement. De Minimis Rate Used: N Rate Explanation: The University applies its predetermined approved facilities and administrative rate when charging indirect costs to federal awards rather than the 10% de minimis cost rate as described in Section 200.414 of the Uniform Guidance. The University's final F&A cost rates are effective from October 1, 2023 through September 30, 2024. The University applies its predetermined approved facilities and administrative rate when charging indirect costs to federal awards rather than the 10% de minimis cost rate as described in Section 200.414 of the Uniform Guidance. The University’s final F&A cost rates are effective from October 1, 2023 through September 30, 2024.

Title: 4. Federal Student Loan Programs Accounting Policies: For purposes of the Schedule, expenditures for federal award programs are recognized on the accrual basis of accounting unless otherwise directed by the terms and conditions of the underlying awards. Such expenditures are recognized following the cost principles contained in the Uniform Guidance wherein certain types of expenditures are not allowable or are limited to reimbursement. De Minimis Rate Used: N Rate Explanation: The University applies its predetermined approved facilities and administrative rate when charging indirect costs to federal awards rather than the 10% de minimis cost rate as described in Section 200.414 of the Uniform Guidance. The University's final F&A cost rates are effective from October 1, 2023 through September 30, 2024. The Federal student loan programs listed below are administered directly by the University and balances and transactions relating to these programs are included in the University’s basic financial statements. Loans outstanding at the beginning of the year, the administrative cost allowance and loans made during the year are included in the federal expenditures presented in the Schedule. The balance of loans receivable on September 30, 2024, consists of: see Notes in SEFA for charts/table. The Federal Direct Student Loan Program (“FDSLP”) was established under the Higher Education Act of 1965, as amended in the Student Loan Reform Act of 1993. The FDSLP enables an eligible student or parent to obtain a loan to pay for the student’s cost of attendance directly through the University rather than through private lenders. The University began participation in the FDSLP on July 1, 1996. As a university qualified to originate loans, the University is responsible for handling the complete loan process, including funds management as well as promissory note functions. The University is not responsible for collection of these loans. The FDSLP loans issued during the year ended September 30, 2024 are included in the federal expenditures presented in the Schedule.