Audit 402900

The accompanying Schedule of Expenditures of Federal Awards (the "Schedule") summarizes the federal expenditures of The University of Alabama at Birmingham ("UAB"), a campus of The University of Alabama System, under programs of the federal government for the year ended September 30, 2025. Other campuses of The University of Alabama System are presented in separate reports. 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 statements of net position, of revenues, expenses, and changes in net position and of cash flows of UAB. The federal expenditures of Southern Research Institute ("SRI"), a discretely presented component unit of UAB, have not been included within the Schedule. The blended component units of UAB include UAB Research Foundation, UAB Athletics Foundation, UAB Hospital Management, L.L.C, and Triton Health Systems, L.L.C. These component units do not expend federal awards and therefore are not subject to requirements of the Uniform Guidance. For purposes of the Schedule, federal awards include all grants, contracts, and similar agreements entered into directly between UAB and agencies and departments of the federal government and all subawards to UAB by nonfederal organizations pursuant to federal grants, contracts, and similar agreements. Negative amounts represent adjustments or credits to amounts reported as expenditures in prior years. Complete assistance listing numbers and pass-through numbers are provided when available. The University received permanent endowment funds from the U.S. Centers for Disease Control and Prevention (Lister Hill Center for Health Policy original endowment $5,000,000), and U.S. Agency for International Development (John J. Sparkman Center original endowment $4,000,000). The fair value of the funds endowed for the fiscal year are included in the federal expenditures in the Schedule. A summary of the permanent endowment pooled investment changes is as follows: see the Notes to the SEFA for chart/table.

For purposes of the Schedule, expenditures for federal award programs are recognized on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance where certain types of expenditures are not allowable or are limited to reimbursement.

UAB applies its predetermined approved facilities and administrative rate when charging indirect cost to federal awards rather than the de minimis cost rate described in Section 200.414 of the Uniform Guidance. UAB operates under predetermined fixed F&A cost rates which are effective from October 1, 2024 through September 30, 2025. The predetermined fixed rates were based on 2014 financial information.

The Federal student loan programs listed below are administered directly by the University, and balances and transactions related to these programs are included in the University’s basic financial statements. Loans outstanding at the beginning of the year, the administrative cost allowance and loans made during the year are included in the federal expenditures presented in the Schedule. The balance of loans receivable on September 30, 2025 under the federal student loan programs are summarized as follows: see the Notes to the SEFA for chart/table. The Federal Direct Student Loan Program (FDSLP) (Assistance Listing #84.268) was established under the Higher Education Act of 1965, as amended in the Student Loan Reform Act of 1993. The FDSLP enables an eligible student or parent to obtain a loan to pay for the student's cost of attendance directly through UAB rather than through private lenders. UAB began participating in the FDSL on July 1, 1994. As a university qualified to originate loans, UAB is responsible for handling the complete loan origination process, including funds management and promissory note functions. UAB is not responsible for the collection of these loans. The FDSLP loans issued during the year ended September 30, 2025 are included in the federal expenditures presented in the Schedule.