Title: Loan/loan guarantee outstanding balances
Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the Schedule) summarizes theexpenditures of American University (the University) under programs of the federal governmentfor the year ended June 30, 2022. Because the Schedule presents only the federal award activityof the University, it is not intended to and does not present the financial position, changes in netassets and cash flows of the University.For purposes of the Schedule, federal awards include all grants, contracts and similar agreementsentered directly between the University and agencies and departments of the federal governmentand all sub-awards to the University by nonfederal organizations pursuant to federal grants,contracts and similar agreements.Negative numbers in the Schedule represent adjustments to amounts reported in prior years in thenormal course of business. Assistance Listing numbers and pass-through numbers are providedwhen available.Expenditures for the federal programs are recognized as incurred. Expenditures for studentfinancial aid include Pell program grants to students, the federal share of students FSEOGprogram grants and FWS program earnings, loan disbursements to students, and administrativecost allowances, where applicable.Expenditures for other federal awards are determined using the cost accounting principles andprocedures set forth in Title 2 U.S. Code of Federal Regulations Part 200, Uniform AdministrativeRequirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) asapplicable. Under these cost principles, certain types of expenditures are not allowable or arelimited as to reimbursement. Direct costs are recognized as incurred using the accrual method ofaccounting.
De Minimis Rate Used: N
Rate Explanation: Expenditures for nonfinancial aid awards include indirect costs, relating primarily to facilitiesoperation and maintenance and general administration services, which are allocated to direct costobjectives (including federal award programs) based on negotiated formulas commonly referred toas indirect cost rates. The University applies its predetermined approved facilities andadministrative rate when charging indirect costs to federal awards rather than the 10% de minimiscost rate as described in Section 200.414 of the Uniform Guidance. Indirect costs allocated tosuch awards for the year ended June 30, 2022 were based on predetermined rates negotiated withthe Universitys cognizant federal agency, the Department of Health and Human Services.
FEDERAL PERKINS LOAN PROGRAM (84.038) - Balances outstanding at the end of the audit period were 5543101. The Federal Perkins Loan Program (Perkins) under Assistance Listing #84.038 is administered directly by the University and the balance and transactions relating to this program are included in the Universitys basic financial statements. Loans outstanding at the beginning of the year are included in the federal expenditures presented in the Schedule.The University is responsible only for the performance of certain administrative duties with respect to federal direct loans disbursed by the Department of Education on behalf of University students under the direct loan programs (Federal Stafford, Federal Parents Loans for Undergraduate and Graduate Students, and Unsubsidized Federal Stafford Loans). These loan programs collectively are Assistance Listing # 84.268. It is not practical to determine the balance of loans outstanding to students and former students of the University under these federally guaranteed loan programs at June 30, 2022. The current year disbursements are included in the Schedule.
Title: Federal Emergency Management Agency (FEMA)
Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the Schedule) summarizes theexpenditures of American University (the University) under programs of the federal governmentfor the year ended June 30, 2022. Because the Schedule presents only the federal award activityof the University, it is not intended to and does not present the financial position, changes in netassets and cash flows of the University.For purposes of the Schedule, federal awards include all grants, contracts and similar agreementsentered directly between the University and agencies and departments of the federal governmentand all sub-awards to the University by nonfederal organizations pursuant to federal grants,contracts and similar agreements.Negative numbers in the Schedule represent adjustments to amounts reported in prior years in thenormal course of business. Assistance Listing numbers and pass-through numbers are providedwhen available.Expenditures for the federal programs are recognized as incurred. Expenditures for studentfinancial aid include Pell program grants to students, the federal share of students FSEOGprogram grants and FWS program earnings, loan disbursements to students, and administrativecost allowances, where applicable.Expenditures for other federal awards are determined using the cost accounting principles andprocedures set forth in Title 2 U.S. Code of Federal Regulations Part 200, Uniform AdministrativeRequirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) asapplicable. Under these cost principles, certain types of expenditures are not allowable or arelimited as to reimbursement. Direct costs are recognized as incurred using the accrual method ofaccounting.
De Minimis Rate Used: N
Rate Explanation: Expenditures for nonfinancial aid awards include indirect costs, relating primarily to facilitiesoperation and maintenance and general administration services, which are allocated to direct costobjectives (including federal award programs) based on negotiated formulas commonly referred toas indirect cost rates. The University applies its predetermined approved facilities andadministrative rate when charging indirect costs to federal awards rather than the 10% de minimiscost rate as described in Section 200.414 of the Uniform Guidance. Indirect costs allocated tosuch awards for the year ended June 30, 2022 were based on predetermined rates negotiated withthe Universitys cognizant federal agency, the Department of Health and Human Services.
As of June 30, 2022, the University received approval for $3,695,810 of claims submitted to FEMA during 2022 under Assistance Listing Number 97.036. The claims submitted represented incurred expenses attributed to the Universitys response to COVID-19. The fiscal year 2022 Schedule of Expenditures of Federal Awards includes expenses of $3,310,314 which were incurred in a prior year.