Audit 37007

Title: DIRECT LOAN PROGRAM Accounting Policies: THE ACCOMPANYING SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS IS PRESENTED ON THE ACCRUAL BASIS OF ACCOUNITNG CONSISTENT WITH THE BASIS OF ACCOUNTING USED BY HOOD THEOLOGICAL SEMINARY IN THE PREPARATION OF ITS FINANCIAL STATEMENTS.THE INFORMATION IN THIS SCHEDULE IS PRESENTED IN ACCORDANCE WITH THE REQUIREMENTS OF TITLE 2 U.S. CODE OF FEDERAL REGULATIONS (CFR) PART 200, UNIFORM ADMINISTRATIVE REQUIREMENTS, COST PRINCIPLES, AND AUDIT REQUIREMENTS FOR FEDERAL AWARDS. THE SCHEDULE INCLUDES ALL KNOWN FEDERAL FUNDS EXPENDED BY THE SEMINARY FOR THE YEAR ENDED JUNE 30, 2022. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. THE SEMINARY PARTICIPATES IN THE FEDERAL DIRECT LOAN PROGRAM (THE FDL PROGRAM), INCLUDING THE FEDERAL UNSUBSIDIZED LOAN PROGRAM. THE FDL PROGRAM REQUIRES THE SEMINARY TO REQUEST CASH FROM THE U.S. DEPARTMENT OF EDUCATION'S GRANT MANAGEMENT SYSTEM (G5) AND RECONCILE DISBURSEMENTS MADE TO THE STUDENTS USING SUCH FUNDS. LOANS MADE TO ELIGIBLE SEMINARY STUDENTS UNDER THE FEDERAL STUDENT LOAN PROGRAM DURING THE YEAR ENDED JUNE 30, 2022 ARE SUMMARIZED ABOVE. THE SEMINARY ELECTED NOT TO USE THE 10% DE MINIMUS INDIRECT COST RATE FOR THE YEAR ENDED JUNE 30, 2022. THE SEMINARY IS RESPONSIBLE ONLY FOR THE PERFORMANCE OF CERTAIN ADMINISTRATIVE FUNCTIONS WITH RESPECT TO THE FDL PROGRAM, WHICH ARE NOT INCLUDED IN THE FINANCIAL STATEMENTS OF THE SEMIANRY AS THE U.S. DEPARTMENT OF EDUCATION MAKES THESE LOANS. IT IS NOT PRACTICABLE TO DETERMINE THE BALANCES OF LOANS OUTSTANDING TO STUDENTS AND FORMER STUDENTS UNDER THE FDL PROGRAM AT JUNE 30, 2022.