Title: NOTE 3 FEDERAL STUDENT LOAN PROGRAMS
Accounting Policies: NOTE 1 BASIS OF PRESENTATION The accompanying schedule of expenditures of federal awards (the Schedule) summarizes the federal expenditures incurred by Illinois Wesleyan University (the University) under awards received from the federal government for the year ended July 31, 2022. For purposes of the Schedule, federal awards include all grants, contracts, loans, and loan guarantee agreements entered into directly between the University and agencies and departments of the federal government. Expenditures for federal award programs are recognized on the accrual basis of accounting.
De Minimis Rate Used: N
Rate Explanation: NOTE 2 INDIRECT COSTS The University has four-year predetermined fixed indirect cost rates, effective August 1, 2017 through July 31, 2021, which have been negotiated with the Department of Health and Human Services. The University has applied for a new rate for the period August 1, 2023 through July 31, 2026, and requested a provisional rate be used for the year ended July 31, 2022. The predetermined fixed rates were based on the University's financial information for fiscal year 2012. The base rates for on and off campus were 45% and 15%, respectively, of modified total direct costs. Approximately $37,000 of indirect costs was reimbursed to the University during the year ended July 31, 2022. The University does not use the de minimis indirect cost rate of 10%.
The Federal Perkins Loan Program (Perkins) is administered directly by the University, and balances and transactions relating to this program are included in the University's financial statements. The balance of loans outstanding under the Perkins program was $1,351,769 and $1,927,056 at July 31, 2022 and 2021, respectively. The Nursing Student Loan Program (NSL) is administered directly by the University, and balances and transactions relating to this program are included in the University's financial statements. The balance of loans outstanding under the NSL program was $1,569,621 and $1,489,996 at July 31, 2022 and 2021, respectively. The balance of loans outstanding for these programs consists of the following amounts: Outstanding Balance (8/1/2021) Perkins: $1,927,056; NSL:$1,489,996. Loan Disbursed= Perkins $0; NSL $$318,647. Repayments= Perkins: $(563,139); NSL ($239,022). Cancellations= Perkins: ($12,148); NSL: ($0). Outstanding Balance (7/31/2022) Perkins: $1,315,769; NSL: $1,569,621. The University is responsible only for the performance of certain administrative duties on behalf of the U.S. Department of Education with respect to the Direct Loan Program, and accordingly, the outstanding balances of these loans are not included in its financial statements and it is not practical to determine the balance of loans outstanding to students and former students of the University under these programs at July 31, 2022.