Audit 39519

Title: Federal Student Loan Programs Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal awardactivity of Nazareth College of Rochester (the College) under programs of the federal government for the yearended June 30, 2022, and has been prepared in accordance with accounting principles generally accepted inthe United States of America. The information in the Schedule is presented in accordance with the requirementsof 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 aselected portion of the operations of the College, it is not intended to and does not present the financial position,changes in net assets, or cash flows of the College.(2) Basis of AccountingExpenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures arerecognized following the cost principles contained in the Uniform Guidance, wherein certain types ofexpenditures are not allowable or are limited as to reimbursement.For the purposes of the Schedule, federal awards include all grants, contracts, and similar agreements enteredinto directly between the College and agencies and departments of the federal government. Student financialaid includes certain awards to provide financial assistance to students, primarily under the Federal Work-Study,Pell Grant, and Supplemental Educational Opportunity Grant programs of the Department of Education. TheCollege receives awards to make loans to eligible students under certain federal student loan programs andfederally guaranteed loans are issued to students of the College by the federal government. These loans areconsidered for purposes of determining whether student financial aid is a major or non-major program. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The Federal Perkins Loan Program is administered directly by the College and balances and transactions relating to this program are included in the Colleges financial statements. The balance of loans outstanding under the Federal Perkins Loan Program was $792,185 at June 30, 2022.