Audit 403908

The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) summarizes the expenditures of The University of Alabama in Huntsville (the “University”), 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 presented in this Schedule is presented on the accrual basis of accounting, which is in accordance with the 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 the federal award activity of the University, it is not intended to and does not present the financial position, changes in net position and cash flows of the University. The only component unit of the University is the University of Alabama in Huntsville Foundation. This component unit is not subject to requirements of the Uniform Guidance as it does not receive federal awards; therefore, it is not included within the Schedule or this report. For purposes of this Schedule, federal awards include all grants, contracts, and similar agreements entered into directly between the University and agencies and departments of the federal government and all sub-awards to the University 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. The assistance listing number and pass-through numbers have been provided to the extent they are available.

For purposes of the Schedule, expenditures for federal award programs are recognized on the accrual basis of accounting unless otherwise directed by the terms and conditions of the underlying awards. Such expenditures are recognized following the cost principles contained in the Uniform Guidance wherein certain types of expenditures are not allowable or are limited to reimbursement. in the accompanying Schedule.

The University elected not to use the de minimis indirect cost rate described in Section 200.414 of the Uniform Guidance. Effective October 1, 2024, the University’s facilities and administrative (F&A) rates are provisional rates, pending completion of the new rate negotiations with the federal cognizant agency, Department of Health and Human Services. The provisional rates are consistent with those in effect under the prior negotiated rate agreement and are applied to modified total direct cost. Once negotiations are finalized, any required adjustments will be applied retroactively to the applicable federal awards.

The Nurse Faculty Loan Program (NFLP) is administered directly by the University, and balances and transactions relating to these programs are included in the University’s financial statements. NFLP 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 outstanding at September 30, 2025 consists of: Nursing Faculty Loans - ALN: 93.264 - $548,025. The Federal Direct Student Loan Program (FDSLP) 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 Federal direct loan to pay for the student’s cost of attendance directly through the University rather than through private lenders. As a university qualified to originate loans, the University is responsible for handling the complete loan process, including funds management as well as promissory note functions. The University is not responsible for collection of these loans. The FDSLP loans issued during fiscal year 2025 are included in the federal expenditures presented in the Schedule.