Title: 3.RELATIONSHIP TO FEDERAL FINANCIAL REPORTS
Accounting Policies: 1. SIGNIFICANT ACCOUNTING POLICIES
The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal grant activity of the University under programs of the federal government for the year ended June 30, 2023. 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 University, it is not intended and does not present the financial position, changes in net assets or cash flows of the University.
The 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. Pass-through entity identifying numbers are presented where available.
Reporting Entity - American University of Beirut and Subsidiary (the “University”) is an independent, not-for-profit, coeducational, nonsectarian institution of higher learning located in Beirut, Lebanon, where it also operates a 392-bed medical center. The University was granted its charter in 1863 by the State of New York and was founded in 1866. It is exempt from federal income taxes under the provisions of Section 501(c)(3) of the U.S. Internal Revenue Code.
The purpose of the University, as an institution of higher learning, is to share in the education of the youth of the Middle East, in service of its people, and in the advancement of knowledge.
The University presently serves 5,797 undergraduate students and 2,041 graduate and professional students in the faculties of Arts and Sciences, Agriculture and Food Sciences, Engineering and Architecture, Medicine, Health Sciences, and schools of Business and Nursing.
Basis of Accounting – Consolidated Financial Statements - The accompanying consolidated financial statements include the accounts of the University and its subsidiaries (the Trust and AUB Limited), collectively referred to as the “University”. All intercompany transactions and balances have been eliminated in consolidation. The consolidated financial statements are prepared on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America. The Trust assets are held in investments and reported under the caption “Assets held in Trust” in the consolidated statements of financial position. AUB Limited financial statements are prepared in accordance with International Financial Reporting Standards (IFRS) and are measured in Euro, which is the functional and reporting currency of the subsidiary. For consolidation purposes, AUB Limited assets and liabilities were translated into the University’s functional and reporting currency which is the US dollar at a rate of 1.093 Eur/US$ as of 30 June 2023. AUB Limited statement of activities was translated into USD using the rate of 1.05 Eur/USD, which is the weighted average rate for the year ended 30 June 2023. Relevant accounting policies are uniform between the different reporting standards of the University and its subsidiary, therefore this did not affect the consolidated financial statements being prepared in accordance with US GAAP.
Revenues are reported as increases in net assets without donor restrictions, unless use of the related assets is limited by explicit donor-imposed restrictions or by law. When such restrictions expire, that is, when a stipulated time restriction ends or purpose restriction is accomplished, such net assets are reclassified as net assets without donor restrictions and reported in the statements of activities as net assets released from restrictions. Expenses are reported as decreases in net assets without donor restrictions.
Expenses are charged to the functions incurring or benefiting from their occurrence. Certain expenses are allocated between medical educational services and health services based on actual levels of effort of the faculty members providing services to each function. Other expenses are allocated among functions on the basis of direct salary cost, metered usage, or other appropriate measures of the expenses incurred.
De Minimis Rate Used: N
Rate Explanation: The University has not elected to use the 10% de minimis indirect cost rate.
RELATIONSHIP TO FEDERAL FINANCIAL REPORTS
The regulations and guidelines governing the preparation of federal financial reports vary by agency and among programs administered by the same agency. Accordingly, the amounts reported in the federal financial reports do not necessarily agree with the amounts reported in the accompany Schedule of Expenditures of Federal Awards, which is prepared as explained in Note 1 above
Title: 4. SUBRECIPIENTS
Accounting Policies: 1. SIGNIFICANT ACCOUNTING POLICIES
The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal grant activity of the University under programs of the federal government for the year ended June 30, 2023. 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 University, it is not intended and does not present the financial position, changes in net assets or cash flows of the University.
The 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. Pass-through entity identifying numbers are presented where available.
Reporting Entity - American University of Beirut and Subsidiary (the “University”) is an independent, not-for-profit, coeducational, nonsectarian institution of higher learning located in Beirut, Lebanon, where it also operates a 392-bed medical center. The University was granted its charter in 1863 by the State of New York and was founded in 1866. It is exempt from federal income taxes under the provisions of Section 501(c)(3) of the U.S. Internal Revenue Code.
The purpose of the University, as an institution of higher learning, is to share in the education of the youth of the Middle East, in service of its people, and in the advancement of knowledge.
The University presently serves 5,797 undergraduate students and 2,041 graduate and professional students in the faculties of Arts and Sciences, Agriculture and Food Sciences, Engineering and Architecture, Medicine, Health Sciences, and schools of Business and Nursing.
Basis of Accounting – Consolidated Financial Statements - The accompanying consolidated financial statements include the accounts of the University and its subsidiaries (the Trust and AUB Limited), collectively referred to as the “University”. All intercompany transactions and balances have been eliminated in consolidation. The consolidated financial statements are prepared on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America. The Trust assets are held in investments and reported under the caption “Assets held in Trust” in the consolidated statements of financial position. AUB Limited financial statements are prepared in accordance with International Financial Reporting Standards (IFRS) and are measured in Euro, which is the functional and reporting currency of the subsidiary. For consolidation purposes, AUB Limited assets and liabilities were translated into the University’s functional and reporting currency which is the US dollar at a rate of 1.093 Eur/US$ as of 30 June 2023. AUB Limited statement of activities was translated into USD using the rate of 1.05 Eur/USD, which is the weighted average rate for the year ended 30 June 2023. Relevant accounting policies are uniform between the different reporting standards of the University and its subsidiary, therefore this did not affect the consolidated financial statements being prepared in accordance with US GAAP.
Revenues are reported as increases in net assets without donor restrictions, unless use of the related assets is limited by explicit donor-imposed restrictions or by law. When such restrictions expire, that is, when a stipulated time restriction ends or purpose restriction is accomplished, such net assets are reclassified as net assets without donor restrictions and reported in the statements of activities as net assets released from restrictions. Expenses are reported as decreases in net assets without donor restrictions.
Expenses are charged to the functions incurring or benefiting from their occurrence. Certain expenses are allocated between medical educational services and health services based on actual levels of effort of the faculty members providing services to each function. Other expenses are allocated among functions on the basis of direct salary cost, metered usage, or other appropriate measures of the expenses incurred.
De Minimis Rate Used: N
Rate Explanation: The University has not elected to use the 10% de minimis indirect cost rate.
SUBRECIPIENTS
For the year ended June 30, 2023, amounts provided to subrecipients totaled $1,156,349 and are listed by program on the Schedule of Expenditures of Federal Awards.