Title: NOTE 1 BASIS OF PRESENTATION
Accounting Policies: NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESExpenditures reported on the SEFA are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The accompanying schedule of expenditures of federal awards (SEFA) includes the federal grant activity of The University of Mobile (the University) and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) 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 financial statements All federal financial awards have been included on the SEFA.
Title: NOTE 4 RELATIONSHIP TO THE FINANCIAL STATEMENTS
Accounting Policies: NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESExpenditures reported on the SEFA are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
Amounts reported in the accompanying SEFA may not agree with amounts reported in the related Federal financial reports filed with grantor agencies because of accruals which would be included in the next report filed with the agencies. Total federal awards per the accompanying SEFA reconciles to the federal grant revenue reported in the Universitys financial statements as follows: Total federal grants and contracts as reported in the financial statements $2,721,297 State of Alabama CARES 20,540 Administrative expenses 16,088 Federal Pell Grant Program - agency transaction 2,325,350 Federal Perkins Loan Program 105,724 Federal Direct Student Loan Program 9,670,785 Federal Awards Per Accompanying Schedule $14,859,784
Title: NOTE 5 PERKINS LOAN PROGRAM
Accounting Policies: NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESExpenditures reported on the SEFA are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The federal student loan program listed below is administered directly by the University. Balances and transactions related to this program are included in the Universitys basic financial statements. The amount of federal expenditures under the Federal Perkins Loan Program in the accompanying schedule of expenditures of federal awards includes the balance of loans outstanding under the Federal Perkins Loan Program of $105,724 as of July 1, 2021. The balance of loans outstanding at June 30, 2022 consists of:Program TitleFederal Assistance Listing NumberAmount OutstandingFederal Perkins Loan Program84.038 $5,102 The Federal Perkins Loan Program expired September 30, 2017, and no disbursements are permitted under the program after July 1, 2018. The University is in the process of liquidating the Perkins Loan Program. No Perkins loan disbursements were made by the University during the year ended June 30, 2022.
Title: NOTE 6 FEDERAL DIRECT STUDENT LOAN PROGRAM
Accounting Policies: NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESExpenditures reported on the SEFA are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
For loans processed under this program, the University is only responsible for performance of certain administrative duties and, accordingly, these loans are not included as assets in the Universitys financial statements. It is not practical to determine the balance of loans outstanding to students and former students of the University under the Federal Direct Student Loan Program as of June 30, 2022. For purposes of the schedule, the amount included as federal expenditures consists of $9,670,785 in new loans processed during the year ended June 30, 2022.