Audit 36459

Title: Loan/loan guarantee outstanding balances Accounting Policies: The accompanying supplementary schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of University of Vermont and State Agricultural College (the University) and is presented on the accrual basis of accounting. The information in the Schedule is presented in accordance with the requirements of the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Therefore, some amounts presented in the Schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. For the year ended June 30, 2022, the University's discretely presented components units did not administer any federal awards. For purposes of the Schedule, and except as noted below, 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. Grants made from the University to other organizations are shown separately on the Schedule as passed through to subrecipients. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. FEDERAL PERKINS LOAN PROGRAM (84.038) - Balances outstanding at the end of the audit period were 1205008. HEALTH PROFESSIONS STUDENT LOANS, INCLUDING PRIMARY CARE LOANS/LOANS FOR DISADVANTAGED STUDENTS (93.342) - Balances outstanding at the end of the audit period were 9466. NURSING STUDENT LOANS (93.364) - Balances outstanding at the end of the audit period were 618359. The University received an allowance for administrative costs for the Federal Perkins Loan Program of $190,082. Expenditures reported on the Schedule represent the outstanding balance at June 30, 2021 plus fiscal 2022 disbursements and the allowance for administrative costs. There were no disbursements of Federal Perkins Loans during the year ended June 30, 2022.With respect to the Federal Direct Loan Program, the University is responsible only for the performance of certain administrative duties and, accordingly, these loans are not included in the Universitys financial statements. It is not practical to determine the balances of loans outstanding under this program at June 30, 2022.

Title: Direct and Indirect Federal Award Expenditures Accounting Policies: The accompanying supplementary schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of University of Vermont and State Agricultural College (the University) and is presented on the accrual basis of accounting. The information in the Schedule is presented in accordance with the requirements of the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Therefore, some amounts presented in the Schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. For the year ended June 30, 2022, the University's discretely presented components units did not administer any federal awards. For purposes of the Schedule, and except as noted below, 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. Grants made from the University to other organizations are shown separately on the Schedule as passed through to subrecipients. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Federal award expenditures consist of direct and indirect costs, which are commonly referred to as facilities and administrative costs (F&A). Direct costs are those that can be readily identified with an individual federally sponsored project. The salary of a principal investigator of a sponsored research project and the materials consumed by the project are examples of direct costs.Unlike direct costs, indirect costs cannot be readily identified with an individual federally sponsored project. Indirect costs are the costs of services and resources that benefit both sponsored and non-sponsored projects and activities. Indirect costs consist of expenses incurred for administration, library, plant maintenance, and building and equipment depreciation.The University and federal agencies use an indirect cost rate to charge indirect costs to individual federally sponsored projects. The rate is a result of a number of complex cost allocation procedures that the University uses to allocate its indirect cost to both sponsored and non-sponsored activities. Rates are negotiated with and approved by the Universitys cognizant audit agency, the U.S. Department of Health and Human Services.