Notes to SEFA
The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) summarizes the expenditures of American University (the “University”) under programs of the federal government for the year ended June 30, 2025. 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. Assistance Listing numbers and pass-through numbers are provided when available.
Expenditures for the federal programs are recognized as incurred. Expenditures for student financial aid include Pell program grants to students, the federal share of students’ FSEOG program grants and FWS program earnings, loan disbursements to students, and administrative cost allowances, where applicable. Expenditures for other federal awards are determined using the cost accounting principles and procedures set forth in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) as applicable. Under these cost principles, certain types of expenditures are not allowable or are limited as to reimbursement. Direct costs are recognized as incurred using the accrual method of accounting. Expenditures for nonfinancial aid awards include indirect costs, relating primarily to facilities operation and maintenance and general administration services, which are allocated to direct cost objectives (including federal award programs) based on negotiated formulas commonly referred to as indirect cost rates. The University applies its predetermined approved facilities and administrative rate when charging indirect costs to federal awards rather than the 10% or 15% de minimis cost rate de minimis cost rate as described in Section 200.414 of the Uniform Guidance. Indirect costs allocated to such awards for the year ended June 30, 2025 were based on predetermined rates negotiated with the University’s cognizant federal agency, the Department of Health and Human Services.
The Federal Perkins Loan Program (Perkins) under Assistance Listing #84.038 is administered directly by the University and the balance and transactions relating to this program are included in the University’s basic financial statements. The amount of Federal Perkins loans outstanding at June 30, 2025, totaled $717,510. Loans outstanding at the beginning of the year are included in the federal expenditures presented in the Schedule. The University is responsible only for the performance of certain administrative duties with respect to federal direct loans disbursed by the Department of Education on behalf of university students under the direct loan programs (Federal Stafford, Federal Parents Loans for Undergraduate and Graduate Students, and Unsubsidized Federal Stafford Loans). These loan programs collectively are Assistance Listing #84.268. It is not practical to determine the balance of loans outstanding to students and former students of the University under these federally guaranteed loan programs at June 30, 2025. The current year disbursements are included in the Schedule.
As of June 30, 2025, the University received approval for $109,399 in management costs under Category Z, submitted to FEMA under Assistance Listing Number 97.036. These claims represent administrative expenditures incurred in connection with the University’s COVID-19 response.