Audit 45986

Title: Loan/loan guarantee outstanding balances Accounting Policies: (1)Basis of PresentationThe accompanying schedule of expenditures of federal awards includes all grants, contracts, and similar agreements entered into directly between Duke University (Duke) and agencies and departments of the federal government and all subawards to Duke by other organizations pursuant to federal grants, contracts, and similar agreements. The accompanying schedule of expenditures of state awards includes all grants, contracts, and similar agreements entered into directly between Duke and agencies and departments of the North Carolina state government and all subawards to Duke by other organizations pursuant to state grants, contracts, and similar agreements. The information in these schedules is prepared on the accrual basis of accounting. The federal award information is presented in accordance with the provisions 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, certain amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, Dukes consolidated financial statements.(2)Summary of Significant Accounting PoliciesExpenditures for student financial aid programs are recognized as incurred and include the federal share of students Federal Supplemental Educational Opportunity Grants Program and Federal Work Study Program earnings, Pell grants, loan disbursements and administrative cost allowances, where applicable.Expenditures for research and development and other federal awards are determined using the cost principles contained in the Uniform Guidance (2 CFR, Part 220). Under these cost principles and administrative requirements, certain expenditures are not allowable or are limited as to reimbursement.Expenditures include facilities and administrative costs, related primarily to facilities operation and maintenance and general, divisional, and departmental administrative services, which are allocated as a percentage of direct cost based on negotiated rates. Facilities and administrative costs allocated to such awards for the year ended June 30, 2022 were based on predetermined fixed rates negotiated with Dukes cognizant federal agency, the Department of Health and Human Services. Duke has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. FEDERAL PERKINS LOAN PROGRAM (84.038) - Balances outstanding at the end of the audit period were 6666510. NURSE FACULTY LOAN PROGRAM (NFLP) (93.264) - Balances outstanding at the end of the audit period were 4445111.

Title: Federal Student Financial Aid Loan Programs Accounting Policies: (1)Basis of PresentationThe accompanying schedule of expenditures of federal awards includes all grants, contracts, and similar agreements entered into directly between Duke University (Duke) and agencies and departments of the federal government and all subawards to Duke by other organizations pursuant to federal grants, contracts, and similar agreements. The accompanying schedule of expenditures of state awards includes all grants, contracts, and similar agreements entered into directly between Duke and agencies and departments of the North Carolina state government and all subawards to Duke by other organizations pursuant to state grants, contracts, and similar agreements. The information in these schedules is prepared on the accrual basis of accounting. The federal award information is presented in accordance with the provisions 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, certain amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, Dukes consolidated financial statements.(2)Summary of Significant Accounting PoliciesExpenditures for student financial aid programs are recognized as incurred and include the federal share of students Federal Supplemental Educational Opportunity Grants Program and Federal Work Study Program earnings, Pell grants, loan disbursements and administrative cost allowances, where applicable.Expenditures for research and development and other federal awards are determined using the cost principles contained in the Uniform Guidance (2 CFR, Part 220). Under these cost principles and administrative requirements, certain expenditures are not allowable or are limited as to reimbursement.Expenditures include facilities and administrative costs, related primarily to facilities operation and maintenance and general, divisional, and departmental administrative services, which are allocated as a percentage of direct cost based on negotiated rates. Facilities and administrative costs allocated to such awards for the year ended June 30, 2022 were based on predetermined fixed rates negotiated with Dukes cognizant federal agency, the Department of Health and Human Services. Duke has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The Federal Perkins and Nurse Faculty Loan (Nurse) Programs are administered directly by Duke andbalances and transactions relating to these programs are included in Dukes consolidated financialstatements. The current year loaned amounts under the Federal Perkins and Nurse Programs were $0 and$834,837, respectively. The amount of Federal Perkins and Nurse loans on the schedule of expenditures offederal awards includes the beginning outstanding loan balance, the current year loaned amount, and theadministrative charge, as applicable. The balances of loans outstanding under the Federal Perkins andNurse Programs were $6,666,510 and $4,445,112, respectively, as of June 30, 2022. Duke is responsible only for the performance of certain administrative duties with respect to the Direct LoanProgram and, accordingly, these loans are not included in its consolidated financial statements. It is notpractical to determine the balance of loans outstanding to students and former students of Duke underthese programs as of June 30, 2022. The amount of current year loaned amounts is included in theschedule of federal expenditures.