Audit 55860

Title: Federal Student Loan Programs Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the Schedule) summarizes theexpenditures of Drexel University and Subsidiaries (the University) under programs of the federalgovernment for the year ended June 30, 2022. Because the Schedule presents only a selectedportion of the operations of the University, it is not intended to, and does not, present theconsolidated financial position, revenues, expenses, and changes in net assets of the University.For the purposes of the Schedule, federal awards include all grants, contracts, and similaragreements entered into directly between the University and agencies or departments of the federalgovernment and all sub-awards to the University by nonfederal organizations pursuant to federalgrants, contracts, and similar agreements.Federally guaranteed loans issued to students of the University by various financial institutions andcampus-based loan programs, disclosed in Note 3, are also included in the Schedule.The Schedule is presented using the accrual basis of accounting. Negative items on the Schedule represent adjustments from the prior year De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The University applies its predetermined approved facilities andadministrative rate when charging indirect costs to federal awards rather than the 10% de minimis cost rate asdescribed in Section 200.414 of the Uniform Guidance. The University also participates in and administers the following student loan programs:Assistance ListingNumberLoan Receivable asof June 30, 2022Other student loan programs:84.038 9,381,504 $93.342 -93.342 -Federal Perkins Loan ProgramPrimary Care LoansLoans for Disadvantaged StudentsNursing Student Loan 93.364 -9,381,504 $Drexel University accounts for such loan programs in separate revolving loan funds. As such, thebalances and transactions of these loan programs are recorded in Drexel Universitys consolidatedfinancial statements. There was no administrative cost allowance for the Federal Perkins LoanProgram for the year ended June 30, 2022. The amount of Perkins loan principal cancelled duringthe year was $50,305 (Assistance Listing #84.038).

Title: Department of Health and Human Services Provider Relief Funds Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the Schedule) summarizes theexpenditures of Drexel University and Subsidiaries (the University) under programs of the federalgovernment for the year ended June 30, 2022. Because the Schedule presents only a selectedportion of the operations of the University, it is not intended to, and does not, present theconsolidated financial position, revenues, expenses, and changes in net assets of the University.For the purposes of the Schedule, federal awards include all grants, contracts, and similaragreements entered into directly between the University and agencies or departments of the federalgovernment and all sub-awards to the University by nonfederal organizations pursuant to federalgrants, contracts, and similar agreements.Federally guaranteed loans issued to students of the University by various financial institutions andcampus-based loan programs, disclosed in Note 3, are also included in the Schedule.The Schedule is presented using the accrual basis of accounting. Negative items on the Schedule represent adjustments from the prior year De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The University applies its predetermined approved facilities andadministrative rate when charging indirect costs to federal awards rather than the 10% de minimis cost rate asdescribed in Section 200.414 of the Uniform Guidance. The University was the recipient of funding under Assistance Listing 93.498, Department of Health and Human Services (HHS) Coronavirus Aid Relief and Economic Security (CARES) Act Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution (PRF). The grant activity presented in the Schedule of Expenditures of Federal awards associated with this Assistance Listing includes all Period 2 and Period 3 funding received between July 1, 2020 and June 30, 2021 as reported to HRSA via the PRF Reporting Portal and includes lost revenues and direct expenditures. The Schedule of Expenditures of Federal Awards includes $9,248,950 of Provider Relief Funds received that have been covered by $9,031,037 of direct expenditures and $217,913 of lost revenues.