Audit 5942

Title: Note 1 – General Accounting Policies: Note 2 – Basis of Presentation and Summary of Significant 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. The Law School has elected not to use the 10% de minimis indirect cost rate as allowed under Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The Law School has elected not to use the 10% de minimis indirect cost rate as allowed under Uniform Guidance. The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the activity for the federal award program of Southwestern Law School (the “Law School”) 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 (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because it presents only a selected portion of the operations of the Law School, it is not intended to, and does not, present the statement of financial position, activities, or cash flows of the Law School.

Title: Note 3 – Federal Student Loan Program Accounting Policies: Note 2 – Basis of Presentation and Summary of Significant 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. The Law School has elected not to use the 10% de minimis indirect cost rate as allowed under Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The Law School has elected not to use the 10% de minimis indirect cost rate as allowed under Uniform Guidance. The federal student loan program listed subsequently is administered directly by the Law School, and balances and transactions relating to this program are included in the Law School’s 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. There were no new loans made under the Federal Perkins Loan Program for the year ended June 30, 2023. The balance of loans outstanding at June 30, 2023, consists of: