Title: Note 1 - Basis of Accounting
Accounting Policies: This Schedule of Expenditures of Federal Awards (Schedule) includes the federal awards activity of Ashland University (University) and is presented on the accrual basis of accounting. 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), therefore some amounts presented in this Schedule may differ from amounts presented in or used in the preparation of the basic financial statements. Because the Schedule presents only a selected portion of the operations of the University, it is not intended to and does not present the financial position, changes in net assets or cash flows. Assistance Listing numbers are presented for those programs for which such numbers were available. All programs are presented by federal agency. Pass-through programs are also presented by the entity through which the University received the federal award.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
This Schedule of Expenditures of Federal Awards (Schedule) includes the federal awards activity of Ashland University (University) and is presented on the accrual basis of accounting. 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), therefore some amounts presented in this Schedule may differ from amounts presented in or used in the preparation of the basic financial statements. Because the Schedule presents only a selected portion of the operations of the University, it is not intended to and does not present the financial position, changes in net assets or cash flows. Assistance Listing numbers are presented for those programs for which such numbers were available. All programs are presented by federal agency. Pass-through programs are also presented by the entity through which the University received the federal award.
Title: Note 2 - Loans
Accounting Policies: This Schedule of Expenditures of Federal Awards (Schedule) includes the federal awards activity of Ashland University (University) and is presented on the accrual basis of accounting. 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), therefore some amounts presented in this Schedule may differ from amounts presented in or used in the preparation of the basic financial statements. Because the Schedule presents only a selected portion of the operations of the University, it is not intended to and does not present the financial position, changes in net assets or cash flows. Assistance Listing numbers are presented for those programs for which such numbers were available. All programs are presented by federal agency. Pass-through programs are also presented by the entity through which the University received the federal award.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The University participates in the Federal Direct Student Loan Program (84.268). The University originates but does not provide funding for the Federal Direct Student Loan Program (FDSL). The $19,630,770 presented on the Schedule of Expenditures of Federal Awards represents the value of new FDSL processed by the University for the year ended May 31, 2023.
Federal Perkins Loan Program
The amount presented on the Schedule for the Federal Perkins Loan Program (84.038) represents loans outstanding at the beginning of the year for which the government imposes continuing compliance requirements. The balance of Federal Perkins Loans outstanding as of May 31, 2023 was $455,170.
Nurse Faculty Loan Program
The amount presented on the Schedule for the Nurse Faculty Loan Program (93.264) represents loans outstanding at the beginning of the year for which the government imposes continuing compliance requirements. The balance of Nurse Faculty Loans outstanding as of May 31, 2023 was $816,296.
Title: Note 3 - Indirect Cost Rate
Accounting Policies: This Schedule of Expenditures of Federal Awards (Schedule) includes the federal awards activity of Ashland University (University) and is presented on the accrual basis of accounting. 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), therefore some amounts presented in this Schedule may differ from amounts presented in or used in the preparation of the basic financial statements. Because the Schedule presents only a selected portion of the operations of the University, it is not intended to and does not present the financial position, changes in net assets or cash flows. Assistance Listing numbers are presented for those programs for which such numbers were available. All programs are presented by federal agency. Pass-through programs are also presented by the entity through which the University received the federal award.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The University has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.
Title: Note 4 - Commitment and Contingent Liabilities
Accounting Policies: This Schedule of Expenditures of Federal Awards (Schedule) includes the federal awards activity of Ashland University (University) and is presented on the accrual basis of accounting. 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), therefore some amounts presented in this Schedule may differ from amounts presented in or used in the preparation of the basic financial statements. Because the Schedule presents only a selected portion of the operations of the University, it is not intended to and does not present the financial position, changes in net assets or cash flows. Assistance Listing numbers are presented for those programs for which such numbers were available. All programs are presented by federal agency. Pass-through programs are also presented by the entity through which the University received the federal award.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
The ED informed the University in August 2021 that they would be performing a focused program review in September 2021 concerning the University’s participation in the ESI, Pell grant and FWS programs.
On September 16, 2022, the University received ED’s Final Program Review Determination (FPRD). The University filed an appeal of the findings and the associated financial assessments contained in the FPRD on October 24, 2022, and submitted a brief in support of the appeal to the ED Office of Hearings and Appeals within the guidelines as prescribed by the Higher Education Act § 487(b)(2) and U.S.C. § 1094(b)(2) on January 23, 2023, dated January 21, 2023. On March 6, 2023, the U.S. Department of Education Office of Federal Student Aid submitted its brief in support of its position to the ED Office of Hearings and Appeals within the guidelines as prescribed by the Higher Education Act § 487(b)(2) and U.S.C. § 1094(b)(2). The appeal process stays ED’s ability to collect the financial assessments, but interest will continue to accrue on the amounts determined in the FPRD from the date of the appeal until either the matter is settled or all legal means are exhausted.
On May 11, 2023, the Chief Administrative Law Judge (Judge) held a hearing and the parties presented oral arguments. The Judge’s initial decision was provided to the parties on July 10, 2023, which upholds the findings and liabilities in the FPRD.
The University has elected not to appeal to the Secretary of the U.S. Department of Education as available per 34 CFR 668.119 (a) and the University has appealed to the United States District Court for the Northern District of Ohio Eastern District at Cleveland (District Court) by a court filing on September 23, 2023.
The University has recorded a $2,300,000 liability of an estimated amount as of and for the year ended May 31, 2022, and $6,400,000 liability of an estimated amount as of and for the year ended May 31, 2023, as a result of the pending final decision from the Judge and in accordance with FASB Codification Topic 450-20 - Loss Contingencies. These amounts were not recorded in the accompanying Schedule as they do not impact any amounts expended in relation to the aforementioned programs during the year ended May 31, 2023. These amounts may not need to be returned to ED, however the determination of any amount that needs to be returned to ED depends on the resolution of the appeal to the District Court, which may require a significant period of time.