The accompanying schedules of expenditures of federal awards and state projects (the Schedules) include the federal award and state project activity of Embry‑Riddle Aeronautical University, Inc. (the University) under programs of the federal government and state of Florida for the year ended June 30, 2025. The information in the Schedules 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 (the Uniform Guidance) and Chapter 10.650, Rules of the Florida Auditor General. Because the Schedules present only a selected portion of the operations of the University, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the University. The reimbursement of costs reflected in the accompanying financial statements as grants and contracts revenue is subject to final approval by federal and state grantors and could be adjusted upon the results of these reviews. Management believes that the results of any such adjustment will not be material to the University’s financial position or change in net assets.
Expenditures reported on the Schedules are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance and Chapter 10.650, Rules of the Florida Auditor General, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedules represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. The University has elected not to use the 10‑percent de minimis indirect cost rate allowed under the Uniform Guidance.
The University administers the Federal Perkins Loan Program. The amount included in the Schedules includes the outstanding balance as of June 30, 2024, of $2,523,551. The outstanding balance of loans receivable under this program was $1,803,177 on June 30, 2025, which includes cancellations of $12,803, assignments of $107,883 and collections on principal of $599,688. As required by Uniform Guidance, the amount shown on the Schedules as expenditures for the Perkins Loan Program is equal to the balance of loans outstanding on June 30, 2024. Under federal law, the Perkins Loan Program ended on September 30, 2017, and final disbursements under the program were permitted through June 30, 2018.
The University participated in the Federal Direct Student Loans Program beginning in May 2010 (which includes subsidized Stafford loans, unsubsidized Stafford loans and Plus loans). Such programs are considered a component of the Student Financial Assistance Cluster. New loans processed for students during the year ended June 30, 2025 were $106,191,129 consisting of Federal Direct Subsidized Loans of $17,027,462, Federal Direct Unsubsidized Loans of $30,407,148, Federal Direct Parent PLUS Loans of $57,512,427, and Federal Direct Graduate PLUS Loans of $1,244,092.
Under the Federal Work‑Study Program, the University matched $316,141 in total compensation for the year ended June 30, 2025, in addition to the federal share of expenditures included in the accompanying Schedules. Under the Federal Supplemental Educational Opportunity Grant Program, the University matched $529,201 in funds awarded to students for the year ended June 30, 2025, in addition to the federal share of expenditures included in the accompanying Schedules.
The University claimed an administrative cost allowance of $162,755 for the year ended June 30, 2025. This amount is included in the accompanying Schedules as federal expenditures under the Federal Work‑Study Program.
The following awards were received directly by the University and passed through to subrecipients during the year ended June 30, 2025:
The University entered into an agreement with the State of Florida’s Department of Highway Safety and Motor Vehicles to issue University specialty license plates through the Embry‑Riddle Aeronautical College License Plate Project (CSFA No. 76.045). Revenue generated by this project is remitted to the University by the State and is placed into an endowed scholarship fund. The earnings from this fund are used to award scholarships to deserving students. Accumulated unspent earnings at July 1, 2024 amounted to $900,340. During the fiscal year ended June 30, 2025, the University received $39,657 in additional funds from the state of Florida, recorded interest of $30,020, a net gain of $85,495, and management fees of $7,511 and awarded $49,594 in scholarships. The balance of the funds remaining in the endowment fund from the project at June 30, 2025, is $998,407.