Title: Basis of Presentation
Accounting Policies: Expenditures reported on the Schedule 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. Negative amounts shown on the Schedule, if any, represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate. In accordance with Uniform Guidance Subpart E Section 200.414, recipients of federal awards are allowed a 10% de minimis administrative cost rate. For the year ended June 30, 2022, the FFEL Program did not provide for additional administrative costs. Therefore, the Authority did not elect to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.
The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of the Oklahoma Student Loan Authority (the Authority) 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 Authority, it is not intended to and does not present the financial position, changes in net position, or cash flows of the Authority.
Title: Nature of Program
Accounting Policies: Expenditures reported on the Schedule 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. Negative amounts shown on the Schedule, if any, represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate. In accordance with Uniform Guidance Subpart E Section 200.414, recipients of federal awards are allowed a 10% de minimis administrative cost rate. For the year ended June 30, 2022, the FFEL Program did not provide for additional administrative costs. Therefore, the Authority did not elect to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.
The purpose of the Authority is to provide loan funds to qualified persons at participating postsecondary educational institutions. The student loans held by the Authority under the Federal Higher Education Act of 1965, as amended, include Federal Stafford (Stafford) Loans, Unsubsidized Stafford Loans for Middle Income Borrowers (Unsubsidized Stafford), Federal Supplemental Loans for Students (SLS), FederalPLUS Loans for Parents (PLUS), Federal PLUS Loans for Graduate or Professional Students (GRAD), and Federal Consolidation Loans (Consolidation). The FFEL Program loans are guaranteed at 98% for loans first disbursed prior to July 1, 2006 and 97% for loans first disbursed on or after July 1, 2006 by the Oklahoma State Regents for Higher Education Guaranteed Student Loan Program (State Guarantee Agency), which is reinsured by the United States Department of Education (the USDE), or guaranteed by other guarantors approved by the USDE (Guarantee Agencies). As of June 30, 2022, approximately $141,259,000 of the Authority's outstanding loans were guaranteed at 98% or 97% of the outstanding balance, as described above.
Title: Relationship to Federal Financial Reports
Accounting Policies: Expenditures reported on the Schedule 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. Negative amounts shown on the Schedule, if any, represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate. In accordance with Uniform Guidance Subpart E Section 200.414, recipients of federal awards are allowed a 10% de minimis administrative cost rate. For the year ended June 30, 2022, the FFEL Program did not provide for additional administrative costs. Therefore, the Authority did not elect to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.
Amounts reported in the accompanying schedule may differ from amounts requested by the Authority for the FFEL Program due to the U.S. government agencys discretionary authority to reduce interest subsidies, special allowance payments, or a combination of both by an amount equal to loan origination fees or lenders fees. Additionally, the amount of special allowance payments is determined by a U.S. government agency using information provided by the Authority; consequently, the amounts are not calculated by the Authority.
Title: Federal Expenditures
Accounting Policies: Expenditures reported on the Schedule 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. Negative amounts shown on the Schedule, if any, represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate. In accordance with Uniform Guidance Subpart E Section 200.414, recipients of federal awards are allowed a 10% de minimis administrative cost rate. For the year ended June 30, 2022, the FFEL Program did not provide for additional administrative costs. Therefore, the Authority did not elect to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.
Due to the nature of the federal awards for the fiscal year ended June 30, 2022, no specific expenditures were made by the FFEL Program; receipts represent subsidies from a U.S. government agency. Such programs are described in the notes to the basic financial statements. The accompanying schedule of expenditures of federal awards includes the beginning balance of loans outstanding under the FFEL Program since the Authority has continuing compliance requirements with respect to those loans, andalso presents the total interest subsidies received from the USDE during the year related to the FFEL Program and spent for debt service. All federal awards received directly from federal agencies are included on the schedule.