Title: Federal Direct Loan Program
Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal award activity of Pepperdine University and its subsidiaries (the University) and is presented on the accrual basis of accounting. The Schedule presents only a selected portion of the operations of the University, and because of this, it is not intended to and does not present the financial position, changes in net assets, and cash flows of the University. 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). Therefore, some amounts presented in this Schedule may differ from amounts presented in, or used in, the preparation of the consolidated financial statements. Negative amounts represent adjustments to awards reported in prior years in the normal course of business. For the purposes of the Schedule, federal awards include all grants, contracts, and similar agreements entered into directly and indirectly between the University and agencies and departments of the federal government. Assistance Listing Numbers and pass-through grant numbers are provided in the Schedule.
De Minimis Rate Used: N
Rate Explanation: The University has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The University has an approved predetermined indirect cost rate at 64.0% of total direct costs on campus and 22.0% of total direct costs off campus, and a separate fringe benefit rate of 32.2% of salaries and wages for both on and off campus effective through July 31, 2022.
The University processed $219,758,522 in new loans under the Federal Direct Loan Program, Assistance Listing Number 84.268. Loan amounts include Federal Stafford Loans, Federal Direct Parent PLUS Loans for Undergraduate Students, and Federal Direct PLUS Loans for Graduate Students. The University is responsible only for the performance of certain administrative duties with respect to the Federal Direct Loan Program. Accordingly, balances and transactions relating to these loan programs are not included in the Universitys consolidated financial statements. Therefore, it is not practical to determine the balance of loans outstanding to students and former students of the University at July 31, 2022.
Title: Perkins Loan Program
Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal award activity of Pepperdine University and its subsidiaries (the University) and is presented on the accrual basis of accounting. The Schedule presents only a selected portion of the operations of the University, and because of this, it is not intended to and does not present the financial position, changes in net assets, and cash flows of the University. 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). Therefore, some amounts presented in this Schedule may differ from amounts presented in, or used in, the preparation of the consolidated financial statements. Negative amounts represent adjustments to awards reported in prior years in the normal course of business. For the purposes of the Schedule, federal awards include all grants, contracts, and similar agreements entered into directly and indirectly between the University and agencies and departments of the federal government. Assistance Listing Numbers and pass-through grant numbers are provided in the Schedule.
De Minimis Rate Used: N
Rate Explanation: The University has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The University has an approved predetermined indirect cost rate at 64.0% of total direct costs on campus and 22.0% of total direct costs off campus, and a separate fringe benefit rate of 32.2% of salaries and wages for both on and off campus effective through July 31, 2022.
The Federal Perkins Loan Program is administered directly by the University and balances and transactions relating to these programs are included on the Universitys consolidated financial statements. For the year ended July 31, 2022, the University did not advance any loans for the Federal Perkins Loan Program, Assistance Listing Number 84.038. The Perkins Loan Program had an outstanding balance at July 31, 2022 of $5,689,308. For the year ended July 31, 2022, the University cancelled $48,213 Perkins Loans, which will not be reimbursed by the program but instead will be offset against future repayment if the program were to be suspended. The Federal Capital Contribution to the Perkins Loan Program for the year ended July 31, 2022 was $0.
Title: Commingled Assistance
Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal award activity of Pepperdine University and its subsidiaries (the University) and is presented on the accrual basis of accounting. The Schedule presents only a selected portion of the operations of the University, and because of this, it is not intended to and does not present the financial position, changes in net assets, and cash flows of the University. 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). Therefore, some amounts presented in this Schedule may differ from amounts presented in, or used in, the preparation of the consolidated financial statements. Negative amounts represent adjustments to awards reported in prior years in the normal course of business. For the purposes of the Schedule, federal awards include all grants, contracts, and similar agreements entered into directly and indirectly between the University and agencies and departments of the federal government. Assistance Listing Numbers and pass-through grant numbers are provided in the Schedule.
De Minimis Rate Used: N
Rate Explanation: The University has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The University has an approved predetermined indirect cost rate at 64.0% of total direct costs on campus and 22.0% of total direct costs off campus, and a separate fringe benefit rate of 32.2% of salaries and wages for both on and off campus effective through July 31, 2022.
The California Student Aid Commission (CSAC) administers the State Cal Grants A and B Programs, selects the student recipients of these grant awards, and provides funds to participating institutions for disbursement. Federal Temporary Assistance for Needy Families (TANF) funds, Assistance Listing Number 93.558, from the United States Department of Health and Human Services may comprise up to approximately 11% of the total funding for these Cal Grant awards. In fiscal year 2022, the University received Cal Grants A and B funds in the amount of $3,909,893. However, CSAC is unable to determine the exact amount of TANF funds, if any, represented in those awards. Therefore, the Schedule does not include State Cal Grants A and B awards.