Title: 3. FEDERAL STUDENT LOAN PROGRAMS
Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) summarizes thefederal expenditures of the University of Montevallo (the University) under programs of the federalgovernment for the year ended September 30, 2022. The Schedule is presented in accordancewith the requirements of Title 2 U.S. Code of Federal Regulations Part 200, UniformAdministrative Requirements, Cost Principles and Audit Requirements for Federal Awards(Uniform Guidance). Therefore, some amounts presented in the Schedule may differ fromamounts presented in, or used in the preparation of, the basic financial statements.For the year ended September 30, 2022, the University did not elect to use the 10% De minimusIndirect Cost Rate permitted by Uniform Guidance.For the purposes of the Schedule, federal awards include all grants, contracts, and similaragreements entered into directly between the University and agencies and departments of thefederal government and all sub awards to the University by nonfederal organizations pursuant tofederal grants, contracts, and similar agreements.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
Federal Perkins Loan Program The Federal Perkins Loan Program is administered directly by the University and balances and transactions relating to the program are included in the University's basic financial statements. The balances of loans outstanding at September 30, 2022, are summarized as follows: Outstanding loan balance at September 30, 2021 $ 4,571 Outstanding loan balance at September 30, 2022 $ 4,571 This loan program was closed by the Department of Education in a prior year; therefore, no new loans were disbursed, or administrative cost allowance claimed during the year ended September 30, 2022. Federal Direct Student Loan Program (84.268) 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 loan to pay for the students cost of attendance directly through the University rather than through private lenders. The University began participation in the FDSLP on July 1, 2010. As a university qualified to originate loans, the University is responsible for handling the complete loan origination process, including funds management and promissory note functions. The University is not responsible for collection of these loans. The amount of disbursements under the FDSLP during the current year is presented in the Schedule. During the year ended September 30, 2022, the University advanced to students the following amount of new loans under Direct Loan Programs: Amount Advanced Subsidized Stafford loans $ 3,460,419 Unsubsidized Stafford loans 6,985,177 PLUS loans 2,944,879
Title: 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) summarizes thefederal expenditures of the University of Montevallo (the University) under programs of the federalgovernment for the year ended September 30, 2022. The Schedule is presented in accordancewith the requirements of Title 2 U.S. Code of Federal Regulations Part 200, UniformAdministrative Requirements, Cost Principles and Audit Requirements for Federal Awards(Uniform Guidance). Therefore, some amounts presented in the Schedule may differ fromamounts presented in, or used in the preparation of, the basic financial statements.For the year ended September 30, 2022, the University did not elect to use the 10% De minimusIndirect Cost Rate permitted by Uniform Guidance.For the purposes of the Schedule, federal awards include all grants, contracts, and similaragreements entered into directly between the University and agencies and departments of thefederal government and all sub awards to the University by nonfederal organizations pursuant tofederal grants, contracts, and similar agreements.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
For purposes of the Schedule, expenditures for federal award programs are recognized on the accrual basis of accounting. Expenditures for federal student financial aid programs include Federal Pell program grants to students, Federal Perkins Loan Program, Federal Direct Student Loan Program, the federal share of students Federal Supplemental Educational Opportunity Grant (FSEOG) program grants, and Federal Work Study program earnings and administrative cost allowances, where applicable.