The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of Earlham College, including Earlham Foundation (Earlham), under programs of the federal government for the year ended June 30, 2025. The information in the Schedule 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 (Uniform Guidance). Therefore, some amounts presented in the Schedule may differ from amounts presented in, or used in the preparation of, the basic consolidated financial statements. Expenditures in the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following or the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. If Earlham is required to match certain federal assistance, as defined by the grant agreements, no such matching has been included as expenditures in the Schedule.
Earlham has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.
The amount of total expenditures of federal awards reconciles to the revenue in the consolidated statement of activities as follows: Total expenditures of federal awards $ 6,143,950 Less: Federal Direct Student Loan Program (3,398,054) Federal Pell Grants (1,268,929) Perkins Loan program (574,185) Administrative cost drawn down in 2025 (31,290) Government grants per consolidated statement of activities $ 871,492
Earlham did not provide any federal funds to subrecipients nor did they receive any federal non-cash assistance, insurance, loans, or loan guarantees.
Earlham administers the Perkins Loan Program. For purposes of the Schedule, the amount reported includes the outstanding loan balance at the beginning of the fiscal year. Due to regulation changes, no further loans can be made from the program and no administrative cost allowance can be taken from the loan fund. Outstanding loan balance at June 30, 2025 $ 405,294 Outstanding loan balance at June 30, 2024 $ 574,185 Institutions have the option of continuing to collect on outstanding loan balances or can voluntarily liquidate the program. Earlham has no current plans to begin the Perkins liquidation process, however, Earlham is required to periodically return excess cash on hand from the program to the Department of Education.