Notes to SEFA
The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Mercyhurst University under programs of the federal government for the year ended May 31, 2025. The accompanying notes are an integral part of this Schedule. The information in this 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). Because the Schedule presents only a selected portion of the operations of Mercyhurst University, it is not intended to, and does not, present the financial position, changes in net assets or cash flows of Mercyhurst University.
Expenditures on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
Mercyhurst University has elected not to use the 10% and 15% de minimis indirect cost rates as allowed under the Uniform Guidance for awards issued prior to October 1, 2024 or on or after October 1, 2024, respectively, due to the fact that the University has an existing indirect cost rate.
During 2024, no Perkins Loans were distributed. The outstanding balance on the Perkins Loans at May 31, 2025, totaled $378,103.
The Federal Direct Lending Program consists of subsidized and unsubsidized Federal Loans (for students) and Federal PLUS Loans (for parents and graduate students). Federal statute requires that proceeds from Federal Direct Lending Loans (subsidized, unsubsidized and PLUS) be disbursed to the University to be directly applied to students’ accounts. The value of the loans issued for the Federal Direct Student Loan Program is based on disbursed amounts. The University is responsible only for the performance of certain administrative duties with respect to the Federally Guaranteed Student Loan Programs and, accordingly, balances and transactions relating to the loan programs are not included in the University’s basic financial statements. Therefore, it is not practical to determine the balance of loans outstanding to students and former students of Mercyhurst University at May 31, 2025. See report for table.