Audit 52471

Title: Loan/loan guarantee outstanding balances Accounting Policies: NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (a) Basis of Accounting The Schedule includes all federal grants to the Institute which had activity during the year ended June 30, 2022. This Schedule has been prepared on the accrual basis of accounting. (b) De Minimis Indirect Cost Rate The Institute has a federally approved indirect cost rate. Therefore, the 10% de minimis indirect cost rate as allowed under the Uniform Guidance is not applicable for fiscal year 2022. The Institute did not charge any indirect costs to any of its federal programs for the year ended June 30, 2022. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. FEDERAL PERKINS LOAN (FPL) - FEDERAL CAPITAL CONTRIBUTIONS (84.038) - Balances outstanding at the end of the audit period were 1050181. FEDERAL DIRECT STUDENT LOANS (84.268) - Balances outstanding at the end of the audit period were 31332557.

Title: NOTE 1 BASIS OF PRESENTATION Accounting Policies: NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (a) Basis of Accounting The Schedule includes all federal grants to the Institute which had activity during the year ended June 30, 2022. This Schedule has been prepared on the accrual basis of accounting. (b) De Minimis Indirect Cost Rate The Institute has a federally approved indirect cost rate. Therefore, the 10% de minimis indirect cost rate as allowed under the Uniform Guidance is not applicable for fiscal year 2022. The Institute did not charge any indirect costs to any of its federal programs for the year ended June 30, 2022. 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 (the Schedule)includes the federal award activities of The Art Institute of Chicago (the Institute)under programs of the federal government for the year ended June 30, 2022.The information in this Schedule is presented in accordance with the requirements of 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 a selected portion of the operations of the Institute, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Institute. The U.S. Department of Education has been designated as the Institutes oversight agency for the Single Audit. The Schedule of Expenditures of Federal Awards includes programs related to the following Federal agencies: U.S. Department of Education Student Financial Assistance Cluster Education Stabilization Fund Corporation for National and Community Service Program Development and Innovation Grants National Aeronautics and Space Administration Science National Endowment for the Arts Promotion of the Arts Grants to Organizations and Individuals National Science Foundation Office of International Science and Engineering U.S. Small Business Administration Shuttered Venue Operators Grant

Title: NOTE 3 LOANS OUTSTANDING Accounting Policies: NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (a) Basis of Accounting The Schedule includes all federal grants to the Institute which had activity during the year ended June 30, 2022. This Schedule has been prepared on the accrual basis of accounting. (b) De Minimis Indirect Cost Rate The Institute has a federally approved indirect cost rate. Therefore, the 10% de minimis indirect cost rate as allowed under the Uniform Guidance is not applicable for fiscal year 2022. The Institute did not charge any indirect costs to any of its federal programs for the year ended June 30, 2022. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The federal student loan programs are administered directly by the Institute, and balances and transactions relating to these programs are included in the Institutes basic financial statements. Loans outstanding at the beginning of the year and loans made during the year are included in the federal expenditures presented in the Schedule. The balance of loans outstanding at June 30, 2022, consists of $1,050,181 for the Federal Perkins Loan Program, Federal Assistance Listing #84.038.

Title: NOTE 4 SUBSEQUENT EVENTS Accounting Policies: NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (a) Basis of Accounting The Schedule includes all federal grants to the Institute which had activity during the year ended June 30, 2022. This Schedule has been prepared on the accrual basis of accounting. (b) De Minimis Indirect Cost Rate The Institute has a federally approved indirect cost rate. Therefore, the 10% de minimis indirect cost rate as allowed under the Uniform Guidance is not applicable for fiscal year 2022. The Institute did not charge any indirect costs to any of its federal programs for the year ended June 30, 2022. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Subsequent events have been evaluated through XXX, 2022, which is the date the schedule was available for issuance.