Notes to SEFA
The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Mount Mercy University (the University) 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). Because the Schedule 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 assets, or cash flows of the University.
The University has not elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.
At June 30, 2025, the University had the following federal loan program receivables from participating students: Program Assistance Amount Outstanding Title Number Outstanding Federal Perkins Loan 84.038 $55,971 Program Federal Nurse Faculty 93.264 $ 44,736 Educator Loan Program There was no federal capital contribution received for the Federal Perkins Loan Program or Federal Nurse Faculty Educator Loan Program during the year ended June 30, 2025. There were no Federal Perkins Loans or Federal Nurse Faculty Education Loans made during the year. During the year ended June 30, 2025, the University issued new loans to students under the Federal Direct Loan Program (FDLP). The loan program includes subsidized and unsubsidized Stafford Loans, Parent PLUS Loans, and PLUS Loans for graduate students. The value of loans issued for the FDLP is based on disbursed amounts. The loan amounts issued during the year are disclosed in the Schedule. 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 these loan programs are not included in the University’s basic financial statements. Therefore, it is not practicable to determine the balance of loans outstanding to these students and former students of the University at June 30, 2025.
The University is in compliance with the following institutional and program eligibility requirements under the Higher Education Act of 1965 and federal regulations under 34 CFR 668.23: - Correspondence courses the institution offers under 34 CFR 600.7(b) and (g) - Regular students that enroll in correspondence courses under 34 CFR 600.7(b) and (g) - Institution’s regular students that are incarcerated under 34 CFR 600.7(c) and (g) - Completion rates for confined or incarcerated individuals enrolled in nondegree programs at nonprofit institutions under 34 CFR 600.7(c)(3)(ii) and (g) - Institution’s regular students that lack a high school diploma or its equivalent under 34 CFR 600.7(d) and (g) - Completion rates for short-term programs under 34 CFR 668.8(f) and (g) - Placement rates for short-term programs under https://www.ecfr.gov/current/title- 34/subtitle-B/chapter-VI/part-668/subpart-A/section-668.8 34 CFR 668.8(e)(2)