Title: Loan/loan guarantee outstanding balances
Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (SEFA) includes the federal grant activity of Lake Superior State University (the University) under programs of the federal government for the fiscal year ended June 30, 2022. Expenditures reported on the SEFA are reported on the same basis of accounting as the financial statements, although the basis for determining when federal awards are expended is presented in accordance with the requirements of Uniform Guidance. In addition, expenditures reported on the SEFA are recognized following the cost principles contained in Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Therefore, some amounts presented in the SEFA may differ from amounts presented in, or used in the preparation of, the financial statements. Because the SEFA presents 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 position, or cash flows, if applicable, of the University.The University reporting entity is defined in Note 1 to the Universitys financial statements. All federal financial assistance received directly from federal agencies as well as federal financial assistance passed through other government agencies is included on the SEFA. Pass-through entity identifying numbers are presented where available.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
FEDERAL PERKINS LOAN PROGRAM (84.038) - Balances outstanding at the end of the audit period were 791012. NURSING STUDENT LOANS (93.364) - Balances outstanding at the end of the audit period were 800720.
Title: Major Programs and Clusters
Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (SEFA) includes the federal grant activity of Lake Superior State University (the University) under programs of the federal government for the fiscal year ended June 30, 2022. Expenditures reported on the SEFA are reported on the same basis of accounting as the financial statements, although the basis for determining when federal awards are expended is presented in accordance with the requirements of Uniform Guidance. In addition, expenditures reported on the SEFA are recognized following the cost principles contained in Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Therefore, some amounts presented in the SEFA may differ from amounts presented in, or used in the preparation of, the financial statements. Because the SEFA presents 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 position, or cash flows, if applicable, of the University.The University reporting entity is defined in Note 1 to the Universitys financial statements. All federal financial assistance received directly from federal agencies as well as federal financial assistance passed through other government agencies is included on the SEFA. Pass-through entity identifying numbers are presented where available.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
As defined in the Uniform Guidance, Student Financial Assistance programs and Research and Development programs are considered to be clusters of programs and, accordingly, have been classified as one program for testing purposes. As defined in the Office of Budget and Managements Compliance Supplement, COVID-19 Higher Education Emergency Relief Funds were evaluated based on total amount of expenditures for major program determination. The COVID-19 Higher Education Emergency Relief Funds have been defined as a major program.
Title: Federal Student Loan Programs
Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (SEFA) includes the federal grant activity of Lake Superior State University (the University) under programs of the federal government for the fiscal year ended June 30, 2022. Expenditures reported on the SEFA are reported on the same basis of accounting as the financial statements, although the basis for determining when federal awards are expended is presented in accordance with the requirements of Uniform Guidance. In addition, expenditures reported on the SEFA are recognized following the cost principles contained in Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Therefore, some amounts presented in the SEFA may differ from amounts presented in, or used in the preparation of, the financial statements. Because the SEFA presents 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 position, or cash flows, if applicable, of the University.The University reporting entity is defined in Note 1 to the Universitys financial statements. All federal financial assistance received directly from federal agencies as well as federal financial assistance passed through other government agencies is included on the SEFA. Pass-through entity identifying numbers are presented where available.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The federal student loan programs listed subsequently are administered directly by the University, and balances and transactions relating to these programs are included in the Universitys financial statements. Loans outstanding at the beginning of the year plus loans made during the year are included in the federal expenditures presented in the SEFA. Total disbursements under the loan programs for the year ended June 30, 2022 were as follows:FederalPerkinsNursingStudent LoansLoans receivable as of June 30, 2021$ 1,240,626$ 670,706Loans granted-288,746Schedule of awards amount to report$ 1,240,626$ 959,452Under the William D. Ford Federal Direct Loan Program, students and parents borrow funds directly from the federal government; the University is responsible for verifying student eligibility, electronically transmitting the loan records to the federal processor, and distributing the loan funds directly to the student account or parent borrower. For the year ended June 30, 2022, Direct Student Loans totaled $6,537,191 ($2,426,933 subsidized, $2,809,536 unsubsidized, and $1,300,722 PLUS.)
Title: Reconciliation of Revenue
Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (SEFA) includes the federal grant activity of Lake Superior State University (the University) under programs of the federal government for the fiscal year ended June 30, 2022. Expenditures reported on the SEFA are reported on the same basis of accounting as the financial statements, although the basis for determining when federal awards are expended is presented in accordance with the requirements of Uniform Guidance. In addition, expenditures reported on the SEFA are recognized following the cost principles contained in Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Therefore, some amounts presented in the SEFA may differ from amounts presented in, or used in the preparation of, the financial statements. Because the SEFA presents only a selected portion of the operations of the University, it is not intended to, and does not, present the financial position, changes in net position, or cash flows, if applicable, of the University.The University reporting entity is defined in Note 1 to the Universitys financial statements. All federal financial assistance received directly from federal agencies as well as federal financial assistance passed through other government agencies is included on the SEFA. Pass-through entity identifying numbers are presented where available.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
A reconciliation of federal expenditures reported as revenue in the financial statements is provided below:Total expenditures of federal awards$ 18,305,999Direct loans (Note 3)(8,737,269)Accrual related adjustments6,449Total revenue from federal expenditures$ 9,575,179
Title: Pass-Through Entities
Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (SEFA) includes the federal grant activity of Lake Superior State University (the University) under programs of the federal government for the fiscal year ended June 30, 2022. Expenditures reported on the SEFA are reported on the same basis of accounting as the financial statements, although the basis for determining when federal awards are expended is presented in accordance with the requirements of Uniform Guidance. In addition, expenditures reported on the SEFA are recognized following the cost principles contained in Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Therefore, some amounts presented in the SEFA may differ from amounts presented in, or used in the preparation of, the financial statements. Because the SEFA presents 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 position, or cash flows, if applicable, of the University.The University reporting entity is defined in Note 1 to the Universitys financial statements. All federal financial assistance received directly from federal agencies as well as federal financial assistance passed through other government agencies is included on the SEFA. Pass-through entity identifying numbers are presented where available.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The University receives certain federal grants as sub-awards from nonfederal entities. Pass-through entities, where applicable, have been identified in the SEFA with an abbreviation, defined as follows:Pass-through Agency AbbreviationPass-through Agency NameAMTFArts Midwest Touring FundCMUCentral Michigan UniversityEGLEEnvironment, Great Lakes & EnergyEPAEnvironmental Protection AgencyMCACMichigan Council for Arts and Cultural AffairsMDLEOMichigan Department of Labor and Economic OpportunityMDTMichigan Department of TreasuryNOAANational Oceanic and Atmospheric AdministrationRUSRural Utility ServiceSOMState of MichiganUI & PUUniversity of Iowa and Purdue UniversityUDTU.S. Department of TreasurySOMState of MichiganUSFWSUnited States Fish and Wildlife Service