The accompanying Schedule of Expenditures of Federal Awards (“Schedule”) includes the expenditures ofRochester Institute of Technology (the “University”) under programs of the federal government and is presented onthe accrual basis of accounting. The information in this Schedule is presented in accordance with therequirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, CostsPrinciples, and Audit Requirements for Federal Awards (“Uniform Guidance”). Negative amounts representcurrent year adjustments of amounts reported in prior years. The University applies its predetermined approvedfacilities and administrative rate when charging indirect costs to federal awards rather than the 10% or 15% deminimis cost rate, as applicable, as described in Section 200.414 of the Uniform Guidance. For purposes of theSchedule, federal awards include all grants, contracts and similar agreements entered into directly between theUniversity and the agencies and departments of the federal government, or passed-through by other organizationsto the University from agencies and departments of the federal government. When available, Assistance ListingNumbers and pass-through numbers are provided. Because the Schedule presents only a selected portion of theoperations of the University, it is not intended to and does not present the financial position, changes in net assetsor cash flows of the University.
The University participated in the Federal Perkins Loan Program through its expiration on September 30, 2017.The balance in this program, $3,110,736 at June 30, 2025, as well as loan expenditures and disbursements arefederally guaranteed. The University is responsible for certain administrative duties only with respect to the Federal Direct Loan programand, accordingly, these loans are not included in the University’s consolidated financial statements. It is notpractical to determine the balance of loans outstanding under these programs at June 30, 2025.
NTID was created on June 8, 1965 through Public Law 89-36, The National Technical Institute for the Deaf Act(now incorporated into Public Law 99-371, The Education of the Deaf Act (“EDA”) of 1986 and subsequentlymodified by the 1992, 1993 and 1999 Amendments). In March 1966, the Policies, Guidelines, and ApplicationProcedures were prepared by the National Advisory Board through the auspices of the Secretary of Health,Education and Welfare. This document provided a framework for the character and composition of NTID byestablishing specific goals, a program for instruction, procedures for admission, placement provisions and facilitiesrequirements. After an extensive search for the appropriate “Host Institution,” the Agreement for Establishment andOperation of the National Technical Institute for the Deaf between the Secretary of Health, Education and Welfareand Rochester Institute of Technology, was signed on December 20, 1966. These four documents are in essencethe law and collectively provide the overall guidance on the expenditure of federal funds. NTID is a unique federal program in that its funding must be approved through an annual appropriation by theUnited States Congress. The appropriation currently covers approximately 79% of the College’s total operatingcosts and provides matching funds for the University’s Federal Endowment Fund. The remaining operating costsare funded by other sources of income including tuition, room, board and fees paid by students and a program ofprivate fundraising as required by law. In addition to offering a wide array of academic programs to deaf and hard-of-hearing students, the College promotes and disseminates its services and its research findings nationally and internationally; educates other professionals to serve people who are deaf and hard-of-hearing; and, interacts regularly with its federal oversight agencies. As a result, there are a number of activities whose costs are treated as direct and others that are treated as indirect, where costs have been incurred for common or joint objectives and cannot be readily identified with a particular cost objective. The operation of NTID in conjunction with the overall congressional appropriation process does not result in finalization of the program results until after completion of the indirect cost recovery process negotiated annually by the University with the Cost Allocation Services of the Department of Health and Human Services. For the year ended June 30, 2025, the Policies, Guidelines, and Application Procedures for NTID, promulgated by the Department of Health and Human Services, and the EDA as amended, govern the allowability of expenditures related to NTID. NTID is not subject to 2 CFR Part 200, Subpart E in the determination of the allowability of costs, but rather is subject to the provisions of the four authorizing documents as described above, with particular emphasis on the Cost Principles as stated in the EDA, as amended. The principles and policies employed by the University in determining costs applicable to NTID encompass the concepts of reasonableness of cost, necessity for the operation of NTID, prudence, cost-benefit, and allowability; University policies; and, the EDA. Direct costs are those costs that are identified with activities of the College with relative ease and a high degree of accuracy. After direct costs have been determined and assigned to awards or other work as appropriate, indirect costs are those remaining to be allocated to benefiting cost objectives, net of costs of certain activities not allowable as charges to NTID. The allocation of indirect costs to NTID is designed to reflect an equitable distribution of those allowable costs indirectly benefiting all of the colleges which comprise the University. In addition, NTID received funds in its annual appropriation to support a regional partnership with the Alabama Institute for the Deaf and Blind (“AIDB”). The NTID Southeast Regional STEM Center was established to expand the geographic reach of activities and services supported by NTID consistent with its mission and strategic plan. Of the amount included in government grants and contracts on the Consolidated Statements of Activities, $7,872,225 and $9,437,639 at June 30, 2025 and 2024, respectively, was appropriated for the AIDB regional partnership.
NTID program expenditures for the year ended June 30, 2025 were $116,396,997, of which $92,240,233 represents direct and indirect costs charged to the federal government. Note: The total Federal appropriation of $92,600,841 includes $360,608 received as matching funds under the EDA’s Federal Endowment Program.